summative review II Paying for College

All of the following are good ways to prepare for paying for college EXCEPT...

• Contributing to a 529 plan

• Building a savings

• Pursuing grants and scholarships

• Taking out student loans

Your friend has chosen what college they’re going to attend and says they want to lower the total amount of money they’ll have to budget for while in school. Which of the following should you tell them to focus on?

• Indirect costs

• Tuition

• Direct costs

• Room and board

Which formula is used to calculate the net price of a college?

• Sticker price + grants and scholarships = net price

• Sticker price + value = net price

• Sticker price – grants and scholarships = net price

• Sticker price - value = net price

All of the following statements about the FAFSA are true EXCEPT...

• It is used to determine how much and what kind of financial aid you’re eligible for

• It’s best to submit your FAFSA application later in the filing period so you know what types of aid are available

• There are different school, state, and federal deadlines for filing the FAFSA

• To receive financial aid, you’ll need to submit the FAFSA for each year you’ll be attending college

Jenny receives her FAFSA Submission Summary a few days after filing the FAFSA electronically. Which of the following should she expect to find in this document?

• Admission offers from the schools she included in her FAFSA

• Discounts on tuition at certain colleges based on her financial need

• Career counseling that is offered to all FAFSA filers

• A record of her FAFSA answers, her SAI, financial aid eligibility, and more

What is the relationship between your Student Aid Index (SAI) and your likelihood of qualifying for financial aid?

• A higher SAI means you’ll likely qualify for MORE financial aid

• A higher SAI means you’ll likely qualify for LESS financial aid

• Your SAI is equal to the amount of financial aid you’re eligible to receive

• Your SAI has no effect on how much financial aid you’ll qualify for

Your friend tells you they’ve submitted their FAFSA and they’re ready to start accepting financial aid. What type of aid should they accept first?

• Federal student loans

• Private student loans

• Work study

• Grants and scholarships

All of the following are possible sources of grants and scholarships EXCEPT...

• Government

• Non-profit organizations

• Your parents

• Private businesses

Your friend is an exceptional softball player who’s broken records at your school. What type of financial aid would be most applicable to those achievements?

• Scholarships

• Grants

• Work study

• Student loans

What is the benefit of having a fixed interest rate loan?

• Your interest rate changes annually, therefore, you may be able to get a lower rate

• Your interest rate stays the same, therefore, the amount of interest you pay stays the same

• Your interest rate changes, therefore, making this an easier loan to obtain

• Your interest rate stays the same, but the monthly payment on this type of loan changes drastically