Paying for College

11. 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?

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

1. Which of the following statements is TRUE about the value of education?

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

23. As you make decisions during college, you should focus on...

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

2. While doing online research about the colleges you're considering, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 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

4. In order to qualify for financial aid, which form must you file?

FAFSA

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

FAFSA.

13. What is one advantage of Federal student loans?

Federal student loans have lower credit standards (are easier to get) than private loans, which may require a co-signer

22. Which of these two documents are the same?

Financial Aid Package and Financial Aid Offer

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

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

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

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

25. You'll need a budget once you get to college, so that you aren't overspending each month. Which piece of advice is MOST useful?

Have a conversation with your parent(s) beforehand, so you understand who will pay for which monthly expenses

6. Janelle's family earns about $60,000 per year. She has been accepted to State U and Greenlawn College and is comparing their financial aid packages. State U has a sticker price of $28,000 and net price of $12,000. Greenlawn College has sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?

If making a decision strictly based on cost, Janelle's best option is State U

14. 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

20. Keith's tuition, room & board, and fees for freshman year total $26,000. Using scholarships, grants, and Federal student loans, his financial aid package is $26,500. What option below is both realistic and financially responsible?

Keith should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses

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

Monthly on-campus parking permit

16. How much does it cost to file the FAFSA?

Nothing; it is free

17. Typically, when should you first file the FAFSA?

October or November of your last year of high school

9. When filing your FAFSA, you'll need each of the following documents EXCEPT...

Proof of Employment

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

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

5. Which of the formulas below equates to net price?

Sticker price minus grants and scholarships = net price

7. Which type of financial aid am I? 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

19. As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. What does this mean?

The government expects that your family can contribute about $10,000 to the cost of your education

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

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

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

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

24. You will find each of the following pieces of information on your student Aid Report (SAR) except...

a record of all scholarships you have applied for.