Test on Paying for College & Student Loans
  • 1. what is the Main Purpose of FAFSA?
A) It helps colleges and universities determine whether you ca afford on-campus housing.
B) It helps the government and colleges determine whether you are eligible for academic scholarships.
C) It helps banks and other lenders know what interest rate to charge you for student loans
D) It helps the government and colleges determine the level of aid for which you qualify.
  • 2. Which is potential advantage of community colleges over private colleges and state universities?
A) They offer more scholarships and grants.
B) They are easier to apply to
C) They offer more programs
D) They are less expensive
  • 3. An academic scholarship is an example of _________.
A) A university work study program.
B) Need-Based Financial Aid
C) Merit Based Financial Aid
D) A federal government loan program
  • 4. When do you usually have to begin paying back federal loans.
A) When you start to pay taxes.
B) In your last year of College
C) Within Six Months of Graduation
D) When you get a Full-Time Job
  • 5. When you start paying back loans, what is the first thing you should pay?
A) The Interest
B) The Work Study
C) The Principal
D) The FAFSA
  • 6. Which of the following is true?
A) All colleges usually charge lower tuition for students who have federal loans.
B) Small Private schools charge lower tuition than larger schools.
C) State Schools usually charge lower tuition for students living in the state.
D) Private Schools usually charge lower tuition for students who do well in high school.
  • 7. Marta wants to go to college, but she is concerned about the cost. Which option would you recommend.?
A) Taking out a Private Loan and attending a State College.
B) Taking out a federal loan and attending a Private College.
C) Taking out a private loan and attending a Private College.
D) Taking out a federal loan and attending a state college.
  • 8. One advantage of federal loans over the bank loans is that federal loans,
A) Do not have to be paid back.
B) Have a fixed interest rate.
C) Can be pair monthly or yearly.
D) Do not affect your credit score.
  • 9. The US Department of Education's Pell Grant is an example is an example of ____________.
A) Need- Based Financial Aid
B) Merit- Based Financial Aid
C) A Federal Government Loan Program
D) A University Scholarship Program
  • 10. The federal government offers subsidized loans to students with __________.
A) A Financial Need
B) Good Grades
C) Unusual Interests
D) Low Credit Scores
  • 11. The FAFSA is __________.
A) A distributor of private student loans.
B) An application for federal students aid
C) A inexpensive state college.
D) An office where you can make an appointment to discuss federal loan repayment.
  • 12. A Student Loan is _________.
A) Money all college students receive to pay for college tuition.
B) Money you can get if you have a high GPA in high school.
C) A gift the government gives you to pay for a very expensive college.
D) Money you can borrow to pay for college that you will have to repay later.
  • 13. Which of the following is a true statement?
A) You only have to repay half of your original student loan.
B) You can pay back your loan little by little.
C) You have to repay your student loans before you graduate college.
D) You never get charged interest on student loans.
  • 14. Interest is the ___________.
A) Fee added to the amount you owe.
B) Initial amount of money you borrowed.
C) Time it takes you to repay your loan.
D) Total amount of money you can take out in loans.
  • 15. The sooner you repay your loan, the __________.
A) More likely you are to default.
B) Higher the interest rate on the loan will become.
C) More extra money you will spend paying back your loan.
D) Less extra money you will spend paying back your loan.
  • 16. Carlo always pays more than his minimum loan payment, so he is ________.
A) Paying more fees directly to the bank.
B) Defaulting on his loan.
C) Building up more interest and repaying less on principal
D) Repaying more of his principal and building up less interest.
  • 17. Money spend on interest _________.
A) Goes toward paying down your original debt
B) Immediately causes you to have bad credit.
C) Does not go toward repaying the money you initially borrowed.
D) Lowers your principal.
  • 18. Brianna has a good credit score. Which of the following is most likely true?
A) Brianna has a history of paying her bills in full and on time.
B) Banks will not lend her money.
C) Brianna has defaulted on her loans recently.
D) Brianna has missed More than 9 months of loan payments.
  • 19. Joseph recently deferred his loans, which means he ________.
A) Never has to repay them.
B) Does not have to repay them for a period of time.
C) Missed too many payments in a row.
D) Failed to uphold his end of the loan agreement.
  • 20. Will recently defaulted on his loans. He most likely ________.
A) Enrolled in the military.
B) Missed more than 9 months of loan payments.
C) Paid his loan payments on time.
D) Paid more than his minimum payments.
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