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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 colleges and universities determine whether you ca afford on-campus housing.
B) It helps banks and other lenders know what interest rate to charge you for student loans
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 less expensive
D) They are easier to apply to
  • 3. An academic scholarship is an example of _________.
A) Need-Based Financial Aid
B) Merit 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) In your last year of College
B) Within Six Months of Graduation
C) When you start to pay taxes.
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) All colleges usually charge lower tuition for students who have federal loans.
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) 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 State College.
C) Taking out a federal loan and attending a state college.
D) Taking out a private loan and attending a Private College.
  • 8. One advantage of federal loans over the bank loans is that federal loans,
A) Can be pair monthly or yearly.
B) Have a fixed interest rate.
C) Do not have to be paid back.
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 University Scholarship Program
B) A Federal Government Loan Program
C) Merit- Based Financial Aid
D) Need- Based Financial Aid
  • 10. The federal government offers subsidized loans to students with __________.
A) Low Credit Scores
B) Good Grades
C) Unusual Interests
D) A Financial Need
  • 11. The FAFSA is __________.
A) An application for federal students aid
B) An office where you can make an appointment to discuss federal loan repayment.
C) A inexpensive state college.
D) A distributor of private student loans.
  • 12. A Student Loan is _________.
A) Money you can get if you have a high GPA in high school.
B) A gift the government gives you to pay for a very expensive college.
C) Money all college students receive to pay for college tuition.
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 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) Initial amount of money you borrowed.
B) Fee added to the amount you owe.
C) Total amount of money you can take out in loans.
D) Time it takes you to repay your loan.
  • 15. The sooner you repay your loan, the __________.
A) Higher the interest rate on the loan will become.
B) More likely you are to default.
C) Less extra money you will spend paying back your loan.
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) Defaulting on his loan.
B) Paying more fees directly to the bank.
C) Repaying more of his principal and building up less interest.
D) Building up more interest and repaying less on principal
  • 17. Money spend on interest _________.
A) Lowers your principal.
B) Goes toward paying down your original debt
C) Does not go toward repaying the money you initially borrowed.
D) Immediately causes you to have bad credit.
  • 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) Brianna has missed More than 9 months of loan payments.
C) Banks will not lend her money.
D) Brianna has defaulted on her loans recently.
  • 19. Joseph recently deferred his loans, which means he ________.
A) Missed too many payments in a row.
B) Never has to repay them.
C) Does not have to repay them for a period of time.
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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