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Test on Paying for College & Student Loans
Contributed by: Garcia
  • 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 banks and other lenders know what interest rate to charge you for student loans
D) It helps colleges and universities determine whether you ca afford on-campus housing.
  • 2. Which is potential advantage of community colleges over private colleges and state universities?
A) They are easier to apply to
B) They offer more scholarships and grants.
C) They are less expensive
D) They offer more programs
  • 3. An academic scholarship is an example of _________.
A) Merit Based Financial Aid
B) A federal government loan program
C) Need-Based Financial Aid
D) A university work study 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 Work Study
B) The FAFSA
C) The Principal
D) The Interest
  • 6. Which of the following is true?
A) Small Private schools charge lower tuition than larger schools.
B) State Schools usually charge lower tuition for students living in the state.
C) Private Schools usually charge lower tuition for students who do well in high school.
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 federal 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 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) Need- Based Financial Aid
B) Merit- Based Financial Aid
C) A University Scholarship Program
D) A Federal Government Loan Program
  • 10. The federal government offers subsidized loans to students with __________.
A) Low Credit Scores
B) Unusual Interests
C) Good Grades
D) A Financial Need
  • 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) A gift the government gives you to pay for a very expensive college.
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) Money you can get if you have a high GPA in high school.
  • 13. Which of the following is a true statement?
A) You can pay back your loan little by little.
B) You have to repay your student loans before you graduate college.
C) You only have to repay half of your original student loan.
D) You never get charged interest on student loans.
  • 14. Interest is the ___________.
A) Initial amount of money you borrowed.
B) Total amount of money you can take out in loans.
C) Time it takes you to repay your loan.
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) Higher the interest rate on the loan will become.
D) More extra money you will spend paying back your loan.
  • 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) Defaulting on his loan.
D) Building up more interest and repaying less on principal
  • 17. Money spend on interest _________.
A) Does not go toward repaying the money you initially borrowed.
B) Goes toward paying down your original debt
C) Immediately causes you to have bad credit.
D) Lowers your principal.
  • 18. Brianna has a good credit score. Which of the following is most likely true?
A) Brianna has defaulted on her loans recently.
B) Brianna has missed More than 9 months of loan payments.
C) Brianna has a history of paying her bills in full and on time.
D) Banks will not lend her money.
  • 19. Joseph recently deferred his loans, which means he ________.
A) Missed too many payments in a row.
B) Failed to uphold his end of the loan agreement.
C) Never has to repay them.
D) Does not have to repay them for a period of time.
  • 20. Will recently defaulted on his loans. He most likely ________.
A) Paid more than his minimum payments.
B) Enrolled in the military.
C) Paid his loan payments on time.
D) Missed more than 9 months of loan payments.
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