Test on Paying for College & Student Loans
  • 1. what is the Main Purpose of FAFSA?
A) It helps the government and colleges determine whether you are eligible for academic scholarships.
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 banks and other lenders know what interest rate to charge you for student loans
  • 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 programs
D) They offer more scholarships and grants.
  • 3. An academic scholarship is an example of _________.
A) A federal government loan program
B) Merit Based Financial Aid
C) A university work study program.
D) Need-Based Financial Aid
  • 4. When do you usually have to begin paying back federal loans.
A) When you start to pay taxes.
B) When you get a Full-Time Job
C) Within Six Months of Graduation
D) In your last year of College
  • 5. When you start paying back loans, what is the first thing you should pay?
A) The Interest
B) The Principal
C) The FAFSA
D) The Work Study
  • 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) Private Schools usually charge lower tuition for students who do well in high school.
D) State Schools usually charge lower tuition for students living in the state.
  • 7. Marta wants to go to college, but she is concerned about the cost. Which option would you recommend.?
A) Taking out a federal loan and attending a Private College.
B) Taking out a private loan and attending a Private College.
C) Taking out a federal loan and attending a state 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 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) A Federal Government Loan Program
B) Need- Based Financial Aid
C) Merit- Based Financial Aid
D) A University Scholarship Program
  • 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 application for federal students aid
B) A inexpensive state college.
C) A distributor of private student loans.
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) A gift the government gives you to pay for a very expensive college.
C) Money you can borrow to pay for college that you will have to repay later.
D) Money you can get if you have a high GPA in high school.
  • 13. Which of the following is a true statement?
A) You only have to repay half of your original student loan.
B) You never get charged interest on student loans.
C) You can pay back your loan little by little.
D) You have to repay your student loans before you graduate college.
  • 14. Interest is the ___________.
A) Initial amount of money you borrowed.
B) Time it takes you to repay your loan.
C) Total amount of money you can take out in loans.
D) Fee added to the amount you owe.
  • 15. The sooner you repay your loan, the __________.
A) Less extra money you will spend paying back your loan.
B) More likely you are to default.
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) Repaying more of his principal and building up less interest.
B) Paying more fees directly to the bank.
C) Building up more interest and repaying less on principal
D) Defaulting on his loan.
  • 17. Money spend on interest _________.
A) Lowers your principal.
B) Does not go toward repaying the money you initially borrowed.
C) Immediately causes you to have bad credit.
D) Goes toward paying down your original debt
  • 18. Brianna has a good credit score. Which of the following is most likely true?
A) Brianna has defaulted on her loans recently.
B) Banks will not lend her money.
C) Brianna has a history of paying her bills in full and on time.
D) Brianna has missed More than 9 months of loan payments.
  • 19. Joseph recently deferred his loans, which means he ________.
A) Failed to uphold his end of the loan agreement.
B) Does not have to repay them for a period of time.
C) Missed too many payments in a row.
D) Never has to repay them.
  • 20. Will recently defaulted on his loans. He most likely ________.
A) Enrolled in the military.
B) Paid his loan payments on time.
C) Missed more than 9 months of loan payments.
D) Paid more than his minimum payments.
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