Unit 4 Test - Paying for College

Last updated over 3 years ago

24 questions

1

In order to qualify for financial aid, which of the following must be filled out?

FAFSA

Financial Aid Letter

EFC

SAR

While researching the colleges you are considering, you see an ad that says, "Enter a few vital pieces of information, pay $19.99 per month, and we guarantee you'll win a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed?

Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites

Sign up, because at $40 per month, it will be a bargain if you win thousands in scholarships

Sign up, but use a fake email address in case it's spam

Don't sign up unless your parent says it's OK to use their credit card for the payments

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

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

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

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

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

Which statement is true about the value of education?

Every college graduate can expect to have a  starting salary over $60,000  right after college.

A high school graduate can expect to earn about the same as a college graduate.

A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career.

Pursuing a college degree only has quantitative benefits, such as a higher salary.

What is the formula for calculating net price?

Sticker price + grants and scholarships = net price

Sticker price minus grants and scholarships = net price

Grants and scholarships + student loans = net price

Sticker price minus student loans = net price

Which type of financial aid is described?: I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.

Subsidized federal loan

Unsubsidized federal loan

Grant

Work-Study

Tiffany lives on campus. Which of the following cost categories can she most likely remove from her budget?

Books for her classes

Meal plan for the semester

Tuition for the semester

Monthly on-campus parking permit

When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. Which piece of advice is LEAST useful in this situation?

“Your parents should take out a Direct PLUS Loan for the other $6000.”

“You should apply for additional scholarships or grants that are being offered from other organizations.”

“You should start the semester, hope the college doesn't notice the shortage, and then deal with the consequences later if they catch you.”

“You should call the financial aid office, explain the situation, and ask them to review your materials again.”

What is a good rule of thumb to consider when it comes to student loan debt?

You should borrow as much as your college says you should borrow as laid out in your financial aid award letter

You should borrow as much money as you can through private loans and then take out federal loans

You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college

You should never borrow money to go to college because it is unlikely that you will be able to pay it back

How much does it cost to file the FAFSA?

$50

Nothing; it is free

It is 2% of your total loan amount

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

Typically, when should you FIRST file the FAFSA?

October of your last year of high school

After you finish freshman year of high school

After you receive your Student Aid Report

Once you are ready to start repaying your student loans

Your financial aid package at your dream school includes eligibility for a work-study job. Which of these is a valid reason for rejecting that opportunity?

If you cannot handle the time commitment of academics and the work-study job, your grades might suffer.

The amount you earn through work-study will eventually need to be repaid in your student loan debt, with interest, making it a bad deal.

Once you accept a work-study job, you are not legally allowed to accept any other part-time work.

Work-study jobs pay less than minimum wage, so it’s usually not worth the time.

Frank is comparing different financial aid award letters he has received. He notices that some of the letters do not contain sufficient information for him to determine the net price for that school. What is the BEST course of action that Frank can take?

Frank should talk to the guidance counselor at his high school to get the most updated information for each college.

Frank should contact the financial aid office at each school to ask for the missing information.

Frank should do research online to find the missing information.

Nothing -  Frank can assume that he will receive the information he needs in future mail/email from the college.

Which of the following statements about applying for grants and scholarships is FALSE?

You should not have to pay money or provide sensitive information, such as your SSN, when applying for scholarships

Colleges often offer merit-based (rewarding your accomplishments) scholarships

While the FAFSA is required for college loans or grants, you don't need to complete it for federal, community, or professionally sponsored funds

While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for

Greg has just completed the FAFSA. His student aid report indicates his EFC is $6,000. What does this mean?

He should only apply to schools that cost $6,000 or less

The government expects that his family can contribute about $6,000 to the cost of his education

He can expect to receive $6,000 in loans from the federal government to pay for college

He can expect to receive $6,000 in grants from the federal government to pay for college

Each of the following organizations award grants to college students EXCEPT…

colleges.

the federal government.

private companies.

FAFSA.

Which of these two documents are the same?

Financial Aid Package and Acceptance Letter

Financial Aid Award Letter and Financial Aid Package

FAFSA and Student Aid Report

Student Aid Report and Financial Aid Package

As you make decisions during college, you should focus on…

Avoiding socializing and spending any money, and focus entirely on your studies to maximize your GPA

Having fun, because you’re only in college once

Maximizing your student loan debt

Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college

Which of the following is a good strategy to use when it comes to paying for college?

Only report your own earnings and savings on the FAFSA, not those of your parents, even if you live with them full-time.

See how much you can borrow in loans before applying for scholarships.

Spend the money that you earn from your summer job so you can get more financial aid.

Save your earnings from your summer job so that you can reduce the amount of loans you need to take.

Who qualifies for a Direct PLUS loan?

graduate and undergraduate students

high school students

parents of college students and graduate students

everyone

When are payments on federal student loans due?

After your freshman year

After you get a fulltime job

After you graduate or leave college

Immediately after the loan is disbursed

In what month is the FAFSA available and when is the best time to submit it?

October ; It is recommended to fill it out as early as possible.

October ; It is recommended to fill it out after you take out private loans.

January ; It is recommended to fill it out as early as possible.

October ; It is recommended to fill it out during your junior year of high school.

Which of the following statements about applying for grants and scholarships is TRUE?

Pell Grants are offered based on a student's academic performance.

Colleges only offer merit-based (based on your accomplishments) scholarships and grants.

While the FAFSA is required for college loans or grants, you don't need to complete it for federal, community, or professionally sponsored scholarships.

While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for.

What is the relationship between the FAFSA, a Student Aid Report (SAR), and a Financial Aid Package?

You submit a SAR to determine if you are eligible to file the FAFSA. If you are, you submit the FAFSA and then receive a Financial Aid Package.

You receive a Financial Aid Package first. Then, you file the FAFSA and get your SAR.

The answers you submitted in your FAFSA are reported in your SAR. Schools then use your SAR to create a Financial Aid Package for you.

Schools use the answers you submitted in the FAFSA to create a Financial Aid Package for you, which is then sent to you in a SAR.

In order to qualify for financial aid, which of the following must be filled out?

FAFSA

Financial Aid Letter

EFC

SAR

While researching the colleges you are considering, you see an ad that says, "Enter a few vital pieces of information, pay $19.99 per month, and we guarantee you'll win a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed?

Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites

Sign up, because at $40 per month, it will be a bargain if you win thousands in scholarships

Sign up, but use a fake email address in case it's spam

Don't sign up unless your parent says it's OK to use their credit card for the payments

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

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

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

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

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

Which statement is true about the value of education? 

Every college graduate can expect to have a  starting salary over $60,000  right after college.

A high school graduate can expect to earn about the same as a college graduate.

A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career.

Pursuing a college degree only has quantitative benefits, such as a higher salary.

What is the formula for calculating net price?

Sticker price + grants and scholarships = net price

Sticker price minus grants and scholarships = net price

Grants and scholarships + student loans = net price

Sticker price minus student loans = net price

Which type of financial aid is described?: ﻿I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate. 

Subsidized federal loan

Unsubsidized federal loan

Grant

Work-Study

Tiffany lives on campus. Which of the following cost categories can she most likely remove from her budget?

Books for her classes

Meal plan for the semester

Tuition for the semester

Monthly on-campus parking permit

When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. Which piece of advice is LEAST useful in this situation?

“Your parents should take out a Direct PLUS Loan for the other $6000.”

“You should apply for additional scholarships or grants that are being offered from other organizations.”

“You should start the semester, hope the college doesn't notice the shortage, and then deal with the consequences later if they catch you.”

“You should call the financial aid office, explain the situation, and ask them to review your materials again.”

What is a good rule of thumb to consider when it comes to student loan debt?

You should borrow as much as your college says you should borrow as laid out in your financial aid award letter

You should borrow as much money as you can through private loans and then take out federal loans

You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college

You should never borrow money to go to college because it is unlikely that you will be able to pay it back

How much does it cost to file the FAFSA?

$50

Nothing; it is free

It is 2% of your total loan amount

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

Typically, when should you FIRST file the FAFSA? 

October of your last year of high school

After you finish freshman year of high school

After you receive your Student Aid Report

Once you are ready to start repaying your student loans

Your financial aid package at your dream school includes eligibility for a work-study job. Which of these is a valid reason for rejecting that opportunity?

If you cannot handle the time commitment of academics and the work-study job, your grades might suffer.

The amount you earn through work-study will eventually need to be repaid in your student loan debt, with interest, making it a bad deal.

Once you accept a work-study job, you are not legally allowed to accept any other part-time work.

Work-study jobs pay less than minimum wage, so it’s usually not worth the time.

Frank is comparing different financial aid award letters he has received. He notices that some of the letters do not contain sufficient information for him to determine the net price for that school.  What is the BEST course of action that Frank can take?

Frank should talk to the guidance counselor at his high school to get the most updated information for each college.

Frank should contact the financial aid office at each school to ask for the missing information.

Frank should do research online to find the missing information.

Nothing -  Frank can assume that he will receive the information he needs in future mail/email from the college.

Which of the following statements about applying for grants and scholarships is FALSE?

You should not have to pay money or provide sensitive information, such as your SSN, when applying for scholarships

Colleges often offer merit-based (rewarding your accomplishments) scholarships

While the FAFSA is required for college loans or grants, you don't need to complete it for federal, community, or professionally sponsored funds

While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for

Greg has just completed the FAFSA. His student aid report indicates his EFC is $6,000. What does this mean?

He should only apply to schools that cost $6,000 or less

The government expects that his family can contribute about $6,000 to the cost of his education

He can expect to receive $6,000 in loans from the federal government to pay for college

He can expect to receive $6,000 in grants from the federal government to pay for college

Each of the following organizations award grants to college students EXCEPT…

colleges.

the federal government.

private companies.

FAFSA.

Which of these two documents are the same?

Financial Aid Package and Acceptance Letter

Financial Aid Award Letter and Financial Aid Package

FAFSA and Student Aid Report

Student Aid Report and Financial Aid Package

As you make decisions during college, you should focus on… 

Avoiding socializing and spending any money, and focus entirely on your studies to maximize your GPA

Having fun, because you’re only in college once

Maximizing your student loan debt

Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college

Which of the following is a good strategy to use when it comes to paying for college?

Only report your own earnings and savings on the FAFSA, not those of your parents, even if you live with them full-time.

See how much you can borrow in loans before applying for scholarships.

Spend the money that you earn from your summer job so you can get more financial aid.

Save your earnings from your summer job so that you can reduce the amount of loans you need to take.

Who qualifies for a Direct PLUS loan?

graduate and undergraduate students

high school students

parents of college students and graduate students

everyone

When are payments on federal student loans due?

After your freshman year

After you get a fulltime job

After you graduate or leave college

Immediately after the loan is disbursed

In what month is the FAFSA available and when is the best time to submit it?

October ; It is recommended to fill it out as early as possible.

October ; It is recommended to fill it out after you take out private loans.

January ; It is recommended to fill it out as early as possible.

October ; It is recommended to fill it out during your junior year of high school.

Which of the following statements about applying for grants and scholarships is TRUE?

Pell Grants are offered based on a student's academic performance.

Colleges only offer merit-based (based on your accomplishments) scholarships and grants.

While the FAFSA is required for college loans or grants, you don't need to complete it for federal, community, or professionally sponsored scholarships.

While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for.

What is the relationship between the FAFSA, a Student Aid Report (SAR), and a Financial Aid Package?

You submit a SAR to determine if you are eligible to file the FAFSA. If you are, you submit the FAFSA and then receive a Financial Aid Package.

You receive a Financial Aid Package first. Then, you file the FAFSA and get your SAR.

The answers you submitted in your FAFSA are reported in your SAR. Schools then use your SAR to create a Financial Aid Package for you.

Schools use the answers you submitted in the FAFSA to create a Financial Aid Package for you, which is then sent to you in a SAR.

Unit 4 Test - Paying for College

Unit 4 Test - Paying for College

In order to qualify for financial aid, which of the following must be filled out?

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

Which statement is true about the value of education?

What is the formula for calculating net price?

Which type of financial aid is described?: ﻿I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.

Tiffany lives on campus. Which of the following cost categories can she most likely remove from her budget?

When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. Which piece of advice is LEAST useful in this situation?

What is a good rule of thumb to consider when it comes to student loan debt?

How much does it cost to file the FAFSA?

Typically, when should you FIRST file the FAFSA?

Your financial aid package at your dream school includes eligibility for a work-study job. Which of these is a valid reason for rejecting that opportunity?

Frank is comparing different financial aid award letters he has received. He notices that some of the letters do not contain sufficient information for him to determine the net price for that school. What is the BEST course of action that Frank can take?

Which of the following statements about applying for grants and scholarships is FALSE?

Greg has just completed the FAFSA. His student aid report indicates his EFC is $6,000. What does this mean?

Each of the following organizations award grants to college students EXCEPT…

Which of these two documents are the same?

As you make decisions during college, you should focus on…

Which of the following is a good strategy to use when it comes to paying for college?

Who qualifies for a Direct PLUS loan?

When are payments on federal student loans due?

In what month is the FAFSA available and when is the best time to submit it?

Which of the following statements about applying for grants and scholarships is TRUE?

What is the relationship between the FAFSA, a Student Aid Report (SAR), and a Financial Aid Package?

Which type of financial aid is described?: I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.