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