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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 banks and other lenders know what interest rate to charge you for student loans
C) It helps the government and colleges determine the level of aid for which you qualify.
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 offer more scholarships and grants.
B) They are easier to apply to
C) They are less expensive
D) They offer more programs
  • 3. An academic scholarship is an example of _________.
A) Need-Based Financial Aid
B) Merit Based Financial Aid
C) A federal government loan program
D) A university work study program.
  • 4. When do you usually have to begin paying back federal loans.
A) When you start to pay taxes.
B) In your last year of College
C) When you get a Full-Time Job
D) Within Six Months of Graduation
  • 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) All colleges usually charge lower tuition for students who have federal loans.
C) Private Schools usually charge lower tuition for students who do well in high school.
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 Private College.
C) Taking out a Private Loan and attending a State 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) Do not affect your credit score.
B) Have a fixed interest rate.
C) Do not have to be paid back.
D) Can be pair monthly or yearly.
  • 9. The US Department of Education's Pell Grant is an example is an example of ____________.
A) Merit- Based Financial Aid
B) A University Scholarship Program
C) Need- Based Financial Aid
D) A Federal Government Loan Program
  • 10. The federal government offers subsidized loans to students with __________.
A) A Financial Need
B) Low Credit Scores
C) Unusual Interests
D) Good Grades
  • 11. The FAFSA is __________.
A) An office where you can make an appointment to discuss federal loan repayment.
B) An application for federal students aid
C) A distributor of private student loans.
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 never get charged interest on student loans.
B) You only have to repay half of your original student loan.
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) Total amount of money you can take out in loans.
B) Time it takes you to repay your loan.
C) Fee added to the amount you owe.
D) Initial amount of money you borrowed.
  • 15. The sooner you repay your loan, the __________.
A) Higher the interest rate on the loan will become.
B) Less extra money you will spend paying back your loan.
C) More 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) Repaying more of his principal and building up less interest.
B) Building up more interest and repaying less on principal
C) Paying more fees directly to the bank.
D) Defaulting on his loan.
  • 17. Money spend on interest _________.
A) Immediately causes you to have bad credit.
B) Does not go toward repaying the money you initially borrowed.
C) Goes toward paying down your original debt
D) Lowers your principal.
  • 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) Does not have to repay them for a period of time.
B) Never has to repay them.
C) Missed too many payments in a row.
D) Failed to uphold his end of the loan agreement.
  • 20. Will recently defaulted on his loans. He most likely ________.
A) Missed more than 9 months of loan payments.
B) Enrolled in the military.
C) Paid his loan payments on time.
D) Paid more than his minimum payments.
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