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