Personal Finance Final Study
While doing online research about the colleges you're considering attending, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 per month, and we guarantee to win you 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? a. Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites b. Don't sign up, unless your parent says it's OK to use their credit card for the payments c. Sign up, but use a fake email address in case it's spam d. Sign up, because at $40 per month, it will be a bargain if they win you thousands in scholarships
a. Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites
Fred 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 Fred can take? a. Fred should contact the financial aid office at each school to ask for the missing information. b. Nothing - Fred can assume that he will receive the information he needs in future mail/email from the college. c. Fred should talk to the guidance counselor at his school to get the most updated information for each college. d. Fred should do research online to find the missing information
a. Fred should contact the financial aid office at each school to ask for the missing information.
Steven is taking AP courses, plays a fall varsity sport, and is a member of the student council and the chess club. Although he's busy, he also would like to get a part-time job for 8-10 hours per week to generate spending money for when he hangs out with his friends. What should his focus be when job searching? a. How flexible will the employer be with his school and extracurricular activities? b. What percentage of this business's employees go on to top universities? c. Are there enough vacancies that his friends could get jobs there, too? d. What is the pay rate offered with the position?
a. How flexible will the employer be with his school and extracurricular activities?
How much does it cost to file the FAFSA? a. Nothing; it is free b. $50.00 c. It is 2% of your total loan amount d. It is free the first time you file, but costs $9.99/year thereafter
a. Nothing; it is free
You just finished an interview for a summer internship you'd really like, and the interview seemed to go well. What would be an appropriate follow-up? a. Send a nice thank you note or email to the person you interviewed with b. Write the hiring manager an email saying you received another offer and need to know about the position urgently c. Call the business every day after school to see if they've made a hiring decision yet d. Don't reach out to them, because they'll think you're desperate for a job
a. Send a nice thank you note or email to the person you interviewed with
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. a. Subsidized federal loan b. Grants c. Unsubsidized federal loan d. Work-Study
a. Subsidized federal loan
What of the following is NOT a purpose of a Student Aid Report (SAR)? a. The SAR documents all scholarships you have applied for. b. The SAR has your Expected Family Contribution (EFC) c. Schools use your SAR and EFC to create a financial aid package for you. d. The SAR is a record of the answers you submitted on your FAFSA.
a. The SAR documents all scholarships you have applied for.
Which of the following statements is NOT true about the Standard Repayment plan? a. The Standard Repayment Plan has high monthly payments, so you will end up paying MORE in total than any other repayment plan. b. The Standard Repayment Plan has you pay your student loans back in 10 years. c. The Standard Repayment Plan is often recommended because you end up paying the LEAST in total when compared to other repayment plans. d. The Standard Repayment Plan is the default student loan repayment plan that you are put on if you do not choose another plan.
a. The Standard Repayment Plan has high monthly payments, so you will end up paying MORE in total than any other repayment plan.
Assuming you live on campus, which of the following is a cost that you are LEAST likely to pay? a. Transportation to and from school b. Room and Board c. Tuiton d. Books
a. Transportation to and from school
A potential employer asks Ramon, "What is your greatest professional weakness?" Which answer would probably come across best in an interview? a. Truthfully, I'm not great at speaking up in large groups, but I'm working on it b. Basically, I have no job experience whatsoever, so who knows? c. Honestly, my teachers get angry because I'm ALWAYS late to class d. Actually, I don't think I have any
a. Truthfully, I'm not great at speaking up in large groups, but I'm working on it
What is a good rule of thumb to consider when it comes to student loan debt? a. You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college b. You should never borrow money to go to college since it is unlikely that you will be able to pay it back c. You should borrow as much money as you can through private loans and then take out federal loans Selected:d. You should borrow as much as your college says you should borrow as laid out in your financial aid award letter
a. You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college
Put the list of financial activities in the proper sequence from first step to last step: 1. File the FAFSA 2. Save for college and look for scholarships 3. Pay first college bill 4. Complete financial aid paperwork for college you plan to attend 5. Compare financial aid award letters from colleges that have offered you admission a. 1, 2, 5, 4, 3 b. 2, 1, 5, 4, 3 c. 1, 5, 4, 2, 3 d. None of the above
b. 2, 1, 5, 4, 3
Your friend, Juliana, has an informational interview next week. She asks you for advice on how to prepare for it. What would you recommend? a. Avoid personal questions like how those chose their career or what they like least about their job b. Create a list of questions ahead of time that will help you get a better understanding of their job and the industry they work in c. Send a short text to them after your meeting to say "Hey, thanks for your time. Let's do it again!" d. It's not a real interview, so don't worry about preparing any questions -- just let them do all the talking
b. Create a list of questions ahead of time that will help you get a better understanding of their job and the industry they work in
How does your social media behavior influence your ability to get a job? a. It can have a positive impact as employers like fun-loving employees who know how to have a good time b. Having a professional LinkedIn profile is critical since almost all recruiters use it to find talent c. Unprofessional public profiles on social media sites are generally not viewed by employers so no need to worry about those embarrassing pictures d. It has no impact; employers are forbidden by law from looking at your social media accounts
b. Having a professional LinkedIn profile is critical since almost all recruiters use it to find talent
What are TWO advantages of federal student loans? I. Federal student loans do not need to be repaid II. Federal student loans generally have more flexible repayment options compared to private loans III. Federal student loans have lower credit standards (are easier to get) than private loans which may require a co-signer IV. Federal loans don't charge any interest for the entire term of the loan. a. III & IV b. II & III c. I & IV d. II & IV
b. II & III
Which of the following is TRUE about student loan repayment? a. Most loans have a grace period of 12-18 months after you graduate college. b. If you miss a loan payment, there can be consequences starting as early as 15 days after your first missed loan payment. c. If you are having a hard time making your loan payments, contacting your loan servicer is not a good idea because it will get you in more trouble. d. If your loan enters default, that means it has been forgiven by the loan servicer.
b. If you miss a loan payment, there can be consequences starting as early as 15 days after your first missed loan payment.
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? a. Keith should not choose this college because he cannot afford it b. Keith should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses c. Keith should take out a private loan and limit himself to $8000 in other expenses freshman year d. Keith should use the remaining $500 to cover all other expenses during freshman year
b. Keith should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses
Rosita is a high school student and track team member who has been babysitting her neighbor's daughter since she was 12. In what order should she structure the sections of her resume? a. Athletic teams, education, work experience, volunteer experience, name/contact info b. Name/contact info, work experience, education, honors & awards, athletic teams c. Name/contact info, volunteer experience, awards & honors, hobbies d. Name/contact info, hobbies, computer skills, work experience, education
b. Name/contact info, work experience, education, honors & awards, athletic teams
Which of the following documents is NOT required to file your FAFSA? a. Recent tax return b. Proof of employment c. Bank and/or investment statements (if applicable) d. Social Security number (or Alien Registration Card, if not US citizen)
b. Proof of employment
Which of the following statements about applying for grants and scholarships is FALSE? a. While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for b. While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored funds c. You should not have to pay money or provide sensitive information, such as your SSN, when applying for scholarships d. Colleges often offer merit-based (rewarding your accomplishments) and need-based (depending on your financial situation) scholarships
b. While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored funds
A 30-second introduction you prepare in order to introduce yourself to potential employers or professional network connections is called ________________. a. an interview intro b. an elevator pitch c. a LinkedIn profile d. a mini speech
b. an elevator pitch
Which of the following statements is TRUE about the value of education? a. A high school graduate can expect to earn about the same as a college graduate. b. Pursuing a college degree only has quantitative benefits, such as a higher salary. c. A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career d. 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, about a $1,000,000 more than a high school graduate over a career
Which of the following is NOT a good strategy that a "responsible borrower" would use? a. Contact their loan servicer to understand their loan repayment options. b. Only accept the aid that they need. c. Consider only out-of-state schools to attend. d. Research expected salaries before accepting a college's offer of admission and financial aid package.
c. Consider only out-of-state schools to attend.
In order to qualify for financial aid, which form must you file? a. Financial Aid Letter b. EFC c. FAFSA d. SAR
c. FAFSA
Avery wants to apply for an internship in video game development, but she's never had a job before. What strategy should she use when crafting her resume? a. Research an impressive computer programming summer camp and include that on her resume, even though she's never attended b. Try applying without even creating a resume, even though the job posting explicitly asks applicants to submit a resume c. Highlight other things she's done that might make her an attractive candidate -- taking a programming class in high school, being VP of the video game club, contributing to online gaming forums regularly d. Don't even apply for this type of internship until she has more work experience
c. Highlight other things she's done that might make her an attractive candidate -- taking a programming class in high school, being VP of the video game club, contributing to online gaming forums regularly
Your friend Jason is not planning on submitting the FAFSA, because he thinks that his parents earn too much for him to be eligible for financial aid. You tell him that this is a common misconception and that he should definitely file the FAFSA. Otherwise, he could miss out on: I. Subsidized and Unsubsidized Loans II. Work-Study III. Private Loans IV. Grants and Scholarships a. I & II only b. I only c. I, II, & IV only d. All four types of aid
c. I, II, & IV only
As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. What does this mean? a. You should only apply to schools that cost $10,000 or less b. You can expect to receive $10,000 in grants from the federal government to pay for college c. The government expects that your family can contribute about $10,000 to the cost of your education d. You can expect to receive $10,000 in loans from the federal government to pay for college
c. The government expects that your family can contribute about $10,000 to the cost of your education
Question 7 You received a call from an ice cream shop in reference to your recent application for a part-time job. They want you to come in for an interview next Thursday at 6:30pm. What will you wear? a. You're not sure, so you call and ask to speak with the manager about what they expect you to wear b. You're coming straight from a soccer game, so probably your uniform c. A business suit and polished shoes d. Business casual attire, such as non-jeans and a nice collared shirt or blouse
d. Business casual attire, such as non-jeans and a nice collared shirt or blouse
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 of the following is not an option? a. Emmanuel calls the financial aid office, explains the situation, and asks them to review his materials again b. His parents take out a Direct PLUS Loan for the other $6000 c. Emmanuel applies for additional scholarships or grants that are being offered from other organizations d. Emmanuel starts the semester, hoping the college doesn't notice the shortage, and then deals with the consequences if they catch him
d. Emmanuel starts the semester, hoping the college doesn't notice the shortage, and then deals with the consequences if they catch him
Which of the following is a good strategy to use when it comes to paying for college? I. Make a financial plan to figure out how you are going to pay for 4-5 years of college BEFORE you go II. See how much you can borrow in loans before applying for scholarships III. Spend the money that you earn from your summer job so you can get more financial aid IV. Save your earnings from your summer job so that you can reduce the amount of loans you need to take a. II & III only b. I only c. III & IV only d. I & IV only
d. I & IV only
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? a. Greenlawn College is providing Janelle more grants and scholarships b. One factor that impacts net price is family income c. State U has a lower sticker price than Greenlawn College d. If making a decision strictly based on cost, Janelle's best option is State U
d. If making a decision strictly based on cost, Janelle's best option is State U
Which of the formulas below equate to net price? a. Sticker price minus student loans b. Grants and scholarships + student loans c. Sticker price + grants and scholarships d. Sticker price minus grants and scholarships
d. Sticker price minus grants and scholarships
Order these types of financial aid from MOST attractive to LEAST attractive: 1) Private Loans 2) Work-Study 3) Grants & Scholarships 4) Federal Loans a. 3,2,4,1 b. 2, 4, 3, 1 c. 3,4,2,1 d. 1,3,2,4
:a. 3,2,4,1
Every April, businesses in your city start hiring part-time high school employees to work during the summer. You really want to secure one of these jobs. What information should you have with you to be sure you can fill out an application at any place that's hiring? a. Your work history, the proper spelling of your high school, contact info for your references b. Your GPA, your emergency contact info, your parent(s)'s current income levels c. A utility bill, your social security number, and a resume d. Your report card, a list of the best vacations you've taken, contact info for your references
:a. Your work history, the proper spelling of your high school, contact info for your references
Which of these payment terms will likely lead to you paying the LEAST interest on your student loan? a. 5 year term b. 20 year term c. 10 year term d. 15 year term
a. 5 year term
Your friend has an interview tomorrow and is seeking his first job. Which of the following represents the WORST piece of advice you can give him? a. Don't ask questions during your interview, because you will come across as uninformed or unqualified b. Be prepared to answer tough questions, such as your greatest weakness or a time when you were unsuccessful c. Do research ahead of time to understand how your role will support the larger organization d. Plan to arrive at least 15 minutes early
a. Don't ask questions during your interview, because you will come across as uninformed or unqualified
