Unit 3 Postsecondary Review

If students want to be successful in today's society, the only option they have after high school is college?

• True

• False

Which of the following is not considered a type of college financial aid?

• Federal Pell Grants

• Subsidized loans

• Job reimbursements

• Personal savings

Madison won multiple private scholarships as well as a full-ride academic scholarship to her dream college. Which of the following best describes what will happen to Madison's scholarships?

• Madison will receive a check from the college she attends for the amount of scholarship money that is left over after her semester fees are paid.

• The college Madison attends will hold all of the scholarship money they receive for any potential future costs she might have.

• Madison will receive all of the scholarship money directly and can choose to use it for college expenses or not.

• Madison will forfeit any scholarship money she was awarded beyond her tuition needs as the rest will be returned to the organizations that awarded the money.

Grants do not have to be paid back if the person receiving them meets all of the requirements.

• True

• False

Dennis graduated from college about five years ago. He works hard at his job and receives large raises some years, but other years he doesn't. Despite this, he has never missed a single student loan payment. He submits tax returns each year to determine the percentage his student loan payments will be based on his salary. What kind of repayment plan is Dennis most likely on?

• Standard Plan

• Fixed-Income Plan

• Federal Subsidized Plan

• Income-Based Repayment Plan

Government student loans can be subsidized and unsubsidized. Which of the following best describes the primary difference between them?

• Unsubsidized loans charge interest while the student is in school, but subsidized loans do not.

• Subsidized loans will always have smaller payments than unsubsidized loans.

• Unlike unsubsidized loans, payments on subsidized loans are tax deductible.

• They both charge interest, but the government pays the interest on subsidized loans while the student is in school.

Devan is considering becoming a school teacher. To understand the financial implications of his career choice he calculates the ROI of getting a teaching degree compared to his potential earnings. After doing the math, Devan gets a negative ROI. Which of the following is true based on the results?

• Devan will never recoup the money he spent on the degree.

• Devan must work in that career for more than 10 years before it starts paying off.

• Devan will have to wait longer to get a return on his investment than he would with a different degree.

• Devan should not get a teaching degree because it is not worth the cost.

Brayden is looking for investors to fund his debut album: "Financial Math Class is the Thing Evuh!" His buddy, Zach, predicts many album sales, so he invests $25,000. He was right! After all the sales were tallied and the expenses taken care of, Brayden paid Zach $60,000. What was Zach's ROI?

Total Profit - Investment = Benefit

then take

(Benefit/Cost) x 100 = ROI%

(hint: it was a pretty good prediction)

• 58%

• 140%

• 71%

• 240%

Unlike private scholarships, college-based scholarships usually come in the form of a _______________.

• Tuition waiver

• Tax deduction

• Direct deposit

• Cash payout

If a person passes away before paying back his student loans, it is possible the government would discharge the loans.

• True

• False