Which of the following statements about federal student loans is TRUE?
A) The interest rate on your loan will be fixed over time.
B) The interest rates on federal loans and private loans are similar.
C) You can only get federal student loans if you demonstrate financial need.
D) You do not accumulate interest on federal loans.
answer
A) The interest rate on your loan will be fixed over time.
question
You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any money you receive?
A) Grants
B) 529 plans
C) Federal student loans
D) Scholarships
answer
C) Federal student loans
question
Which answer best describes an unsubsidized federal loan?
A) You are only responsible for the cost of the loan.
B) You are responsible for paying all the interest that accumulates on your loan.
C) The federal government will only cover the interest accumulated on the loan if you graduate and earn a degree.
D) The federal government will cover the interest accumulated on the loan while you're in school.
answer
B) You are responsible for paying all the interest that accumulates on your loan.
question
Which type of loan requires that you pay the interest accumulated during college?
A) Subsidized federal loan
B) Unsubsidized federal loan
C) Pell Grant
D) University scholarship
answer
B) Unsubsidized federal loan
question
Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.
A) You have the potential to earn more money in the future when you continue your education past high school.
B) You have the potential to earn less money in the future when you continue your education past college.
C) Higher education is not an investment but a debt.
D) Earning potential is not affected by education level.
answer
A) You have the potential to earn more money in the future when you continue your education past high school.
question
Your brother is starting 9th grade next year and is thinking about going to college. What steps would you recommend he take?
A) Meet his guidance counselor.
B) Join a club or sports team.
C) Fill out the FAFSA form.
D) Both A & B
E) Both A & C
answer
D) Both A & B
question
After you send in your FAFSA form, what will you receive back?
A) Your Student Aid Report
B) Your IRS Data Retrieval Form
C) A copy of your family's tax returns
D) A copy of your completed FAFSA form
answer
A) Your Student Aid Report
question
The Federal Application for Student Aid (FAFSA) form:
A) Is only used to apply for federal unsubsidized loans.
B) Is only used to apply for federal subsidized loans.
C) Can only be submitted by mail.
D) Is the free application for federal student aid.
answer
D) Is the free application for federal student aid.
question
Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE?
A) You can only apply online.
B) The earliest you can submit your FAFSA application is December 1st.
C) The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
D) Both A & B are true.
answer
C) The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
question
Which education level has the highest return on investment (ROI)?
A) Bachelor's Degree (4 years of college)
B) High School Diploma
C) Senior in High School
D) ROI is equal for all of the above.
answer
A) Bachelor's Degree (4 years of college)
question
Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?
A) Fill out her FAFSA form
B) Start applying for grants & scholarships
C) Look for school clubs & organizations she's interested in
D) Sign up for college admission exams
answer
C) Look for school clubs & organizations she's interested in
question
Which loan type requires you to make loan payments while you're attending school?
A) Unsubsidized federal loan
B) Subsidized federal loan
C) Pell Grant
D) None of the above
answer
D) None of the above
question
The return on investment (ROI) from education is typically the highest for:
A) A high school graduate
B) A college applicant
C) Someone with a 2-year (Associate) degree
D) Someone with a 4-year (Bachelor's) degree
answer
D) Someone with a 4-year (Bachelor's) degree
question
The Federal Application for Student Aid (FAFSA) form:
A) must be completed by your guidance counselor
B) can only be filled out by U.S. citizens
C) is used to apply for private loans
D) can be submitted on online or by mail
answer
D) can be submitted on online or by mail
question
Which of the following types of financial aid do not require you to pay the money back?
A) Grants
B) Private Loans
C) Federal Loans
D) All of the above.
answer
A) Grants
question
When referring to student loans, what is a grace period?
A) The time period between graduating college and starting your first job when you don't have to pay back student loans
B) The period after graduating or leaving school before you must begin paying back student loans
C) The amount of time you have to pay back your entire student loan amount
D) None of the above
answer
B) The period after graduating or leaving school before you must begin paying back student loans
question
Which of the following loans will typically offer the lowest interest rate?
A) Payday loan
B) Federal Student Loan
C) Private Loan
D) Both A & B
answer
B) Federal Student Loan
question
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
A) 1.2
B) 1.4
C) 1.6
D) 1.8
answer
C) 1.6
question
When looking to finance higher education, what is the best order to look for funding sources?
answer
Grants/Scholarships - Federal Student Loans - Private Loans
question
Which of the following statements about the FAFSA process are TRUE?
answer
You must use the FAFSA to apply for the federal work-study program.
question
If you apply for federal student loans using the FAFSA form, they will fall into what main categories.
answer
Subsidized & Unsubsidized
question
Subsidized Loans
answer
interest paid by gov. while in school. Only avalible to students who demonstrate financial need.
question
Unsubsidized Loans
answer
type of federal student loan which government does not pay the interest while student is in school. Anyone can get this type of loan.
question
Grace Period
answer
Do not have to pay while in school, do have to start making payments six months after graduation.
question
Which of the following statements about federal student loans is TRUE?
answer
The interest rate on your loan will be fixed over time.
question
You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any money you receive?
answer
Federal student loans
question
Which answer best describes an unsubsidized federal loan?
answer
You are responsible for paying all the interest that accumulates on your loan.
question
Which type of loan requires that you pay the interest accumulated during college?
answer
Unsubsidized federal loan
question
Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.
answer
You have the potential to earn more money in the future when you continue your education past high school.
question
Your brother is starting 9th grade next year and is thinking about going to college. What steps would you recommend he take?
answer
Meet his guidance counselor and Join a club or sports team.
question
After you send in your FAFSA form, what will you receive back?
answer
Your Student Aid Report
question
The Federal Application for Student Aid (FAFSA) form:
answer
Is the free application for federal student aid.
question
Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE?
answer
The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
question
Which education level has the highest return on investment (ROI)?
answer
Bachelor's Degree (4 years of college)
question
Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?
answer
Look for school clubs & organizations she's interested in
question
Which loan type requires you to make loan payments while you're attending school?
A) Unsubsidized federal loan
B) Subsidized federal loan
C) Pell Grant
D) None of the above
answer
None of the above
question
The return on investment (ROI) from education is typically the highest for:
answer
Someone with a 4-year (Bachelor's) degree
question
The Federal Application for Student Aid (FAFSA) form:
answer
can be submitted on online or by mail
question
Which of the following types of financial aid do not require you to pay the money back?
answer
grants
question
When referring to student loans, what is a grace period?
answer
The period after graduating or leaving school before you must begin paying back student loans
question
Which of the following loans will typically offer the lowest interest rate?
answer
Federal Student Loan
question
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
answer
1.6
question
How to pay for higher education?
answer
loans, scholarships, grants, savings
question
bachelor's degree earns 1.6 times more
answer
Someone with a 4-year college degree earns an average of $20,000 more in salary each year
question
9th grade - Get involved
answer
• Try different clubs and organizations.
• Ask about volunteering opportunities in your school or community.
• Think about what you're interested in.
question
9th grade - Make an academic plan
answer
• Start planning out your courses for the next four years.
• Sign up for any pre-requisite courses you need.
• Talk to an adult or school counselor about your plan.
question
9th grade - ask questions
answer
• Talk to trusted adults, teachers, and school counselor about your goals.
• Look for information on the schools and careers you're interested in.
• Don't be afraid to ask questions.
question
9th grade - Start thinking about saving
answer
• Start planning out your courses for the next four years.
• Sign up for any pre-requisite courses you need.
• Talk to an adult or school counselor about your plan.
question
10th grade - Sign up for challenging courses
answer
• Register for any required courses.
• Look into ways to earn college credit if possible.
• Take elective classes you're interested in.
• See if there's any advanced courses you are interested in taking later on.
question
10th grade - Look for volunteer and work experience
answer
• Volunteer with projects and causes you find interesting if you have time.
• Look for creative ways to earn money in your free time.
• Continue to focus on your academics and extracurricular activities.
question
10th grade - Research different colleges
answer
• Go to college fairs.
• Research colleges online.
• Read books about different colleges.
• Talk to family, teachers, and counselors.
question
10th grade - ask practice college admissions tests
answer
• Start studying for college admission tests.
• Talk to your teachers or counselor about taking a practice test.
• Look online or at the library for free study guides and practice tests.
question
11th grade - Make college visits
answer
• Talk to friends and adults about colleges you want to visit.
• Call the college's admission office about visiting.
• Schedule a tour.
• See if you can attend a class.
• Check out hangout spots on campus.
• Talk to students and professors during your visit.
• If you can't visit, talk to an alum from the school and explore the college website.
question
11th grade - Sign up for college admission exams
answer
• Register for your college admission exams.
• Call the college admission office for help.
• Register early so you can re-take the exam if you need to.
question
11th grade - Look into grants and scholarships
answer
Research available grants and scholarships online.
• Talk to your school counselor about your options.
• Start applying for opportunities you qualify for!
question
11th grade - Get involved
answer
• Sign up for activities and organizations you care about.
• Look into volunteer and work opportunities.
• Volunteer for leadership positions in your clubs.
question
12th grade - Start Applying
answer
• Get organized - make an application folder.
• Write down all your application deadlines in one place.
• Print out or sign up for your applications online.
• Request a copy of your school transcript.
• Compile all your college admission tests results.
• Start writing your essays.
question
12th grade - Find ways to pay for college
answer
Next, you'll learn about the many different ways to pay for your higher education:
• Grants
• Scholarships
• Work-Study Program
• Subsidized & Unsubsidized Federal Loans
• Private Loans
• FAFSA
question
12th grade - Ask for recommendations
answer
• Ask teachers early for recommendation letters.
• Gather all the materials the teachers need to write your letter - even stamps if they need to mail it.
• Don't forget to say "thank you."
question
When making college visits, you may be able to...
answer
receive reimbursement for your college visit costs, schedule a tour of the college campus, attend a college class to see what it's like
question
Which of the following correctly pairs a financing option with its description?
answer
529 Plan - Money you Save
question
Which of the following statements about federal student loans is TRUE?
answer
You can only get federal student loans if you demonstrate financial need.
question
federal work study Program
answer
A part-time employment that can be awarded as part of a federal financial aid package.
question
Federal student loans
answer
Federal Student Loans are offered directly to students by the government. Federal law sets the maximum
interest rates and fees lenders may charge for these loans. Because of this, their interest rates are lower than
interest rates on other types of loans. Federal Student Loans are awarded to students and the parents of
students based primarily on financial need.
question
Private loans
answer
loans financed by lenders, like banks, credit unions and sometimes the school you attend
can cost more than feral loan and the interest rates can rise over time
question
When paying for higher education, always try to find free money sources
answer
- like grants & scholarships - first. Then look into federal student loans, since these offer low and fixed interest rates.
question
If you apply for federal student loans using the FASA form, they will fall into two main categories:
answer
subsidized or unsubsidized
question
Which loan type requires you to pay the interest you accumulate during school?
answer
With unsubsidized loans, you are the one responsible for paying all accumulated interest on your loan.
question
Subsidized Loan
answer
The federal government will cover - or subsidize - the interest accumulated on the loan while you're in school. After you graduate, you are responsible for paying the interest on the loan
question
Unsubsidized Loan
answer
you are responsible for paying all the interest that accumulates on your loan
question
Which loan type is available to everyone?
answer
unsubsidized loans
question
Subsidized loan
answer
the federal government pays the accrued interest while you're in school. This additional financial coverage means that not all student are eligible for subsidized loans. To receive a subsidized loan, you must first demonstrate financial need
question
Unsubsidized Loan
answer
are available to all students regardless of their financial situation. In general, families that need more help to cover education will typically receive more federal student loan money
question
Do you have to make payments on federal student loans while you're in school?
answer
no, Typically, you can wait for six months after you leave school before you have to start paying back these loans. This is called a grace period.
question
Grace Period - federal student loan advantages
answer
you aren't expected to make payments on these loans while you're in school. In fact, you have six months after you graduation to start making payments.
question
Interest rate - federal student loans advantages
answer
unlike some other loan types, the interest rates on subsidized and unsubsidized loans won't change over time. The interest rates are fixed over the life of the loan.
question
Typically, you can wait for six months after you leave school before you have to start paying back these loans. This is called a grace period.
answer
no, The interest rate on subsidized and unsubsidized federal loans is fixed, which means it won't change.
question
fasa - citizenship status
answer
Even if you're not a U.S. citizen, you might still be eligible for federal student if you have a Green Card, a Permanent Resident Card, or meet other requirements. This information goes in section labeled "Alien Registration Number."
question
fasa - selective service
answer
only males are required to complete this section.
Under the Selective Service System, all men must register for potential military draft within 30 days of their 18th birthday.
question
federal work study progerm
answer
The FAFSA is the only way to apply for the federal work-study program. If you'd like to apply, you need to check "yes" for this question.
question
end-of-year-tax return
answer
At the end of each year, you or your family has to file a tax return with the IRS. If you don't plan to file your own tax return, you can check the "I'm not going to file" box.
question
IRS Forms
answer
If you do file your own tax return in the U.S., you'll use one of the IRS forms - either the 1040, 1040A or 1040EZ. If you're filing a foreign tax return or a return with a U.S. territory check the corresponding box.
question
1040A or 1040EZ Eligibilty
answer
Generally, if you make less than $100,000 a year, you'll be eligible to file a simpler tax form - the 1040A or 1040EZ. You can fill out an example 1040EZ in the Insurance & Taxes module.
question
free money
answer
Grants and scholarships
are great options because they don't have to be paid back
question
money you earn
answer
Jobs are a way to earn money to help pay for school
Federal work-study Program - a part-time employment program that you can apply for using the FAFSA form
question
money you've saved
answer
Personal and family savings - you or your family may have saved money specifically for higher education
529 College Savings Plans
529 college savings plans can be used for any qualified educational expenses. Most states offer a 529 plan.
question
borrowed money
answer
Ferderal loans - made by the government, ederal loans usually have a fixed interest rate, meaning it won't change over time.
Private loans are made by lenders like banks, credit unions, state agencies, or schools.
question
THE FAFSA FORM - PART 1
answer
To apply for federal student loans, grants, and work study, you have to submit a FAFSA form by the January 1st good idea to send in your FAFSA form early, since it may allow you to qualify for more financial aid.
question
TYPES OF FEDERAL LOANS
answer
Federal student loans are advantageous because they generally have the lowest interest rates and don't require a credit check. These loans can be subsidized or unsubsidized. To receive a subsidized loan, you must demonstrate financial need. Most student loans have a grace period - usually six months after you graduate - before you have to start repaying your loan.
question
EDUCATION ROI - PART 1
answer
Higher education loans generally have a positive ROI because you are building skills and work experience that can increase your future earnings. More education is correlated with higher lifetime earnings.
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