GFL Strand 5, Standard 4: Housing, Cars, and Education

What is the purpose of the FAFSA?

• To determine eligibility for federal student aid

• To apply for college scholarships

• To estimate the cost of higher education

• To compare loan interest rates

What is a benefit of completing the FAFSA?

• Access to grants, loans, and work-study programs

• Guaranteed acceptance into college

• Reduced tuition for private universities

• Lower repayment terms for student loans

What is a 529 plan?

• A retirement savings account

• A savings plan for post-secondary education

• A type of government loan program

• A financial aid package from universities

What is the difference between a lease and a loan for a car?

• A lease is long-term, while a loan is short-term

• A lease involves renting, while a loan is for ownership

• A loan requires a higher credit score than a lease

• A lease always costs more than a loan

What is included in the cost of homeownership?

• Only the purchase price of the home

• Property taxes, mortgage payments, and maintenance costs

• Utilities and personal living expenses

• Monthly rent payments

What is a common qualification factor for a home loan?

• A high school diploma

• A low debt-to-income ratio

• A minimum wage income

• A minimum of three years of credit history

What is the purpose of an amortization schedule?

• To show the monthly payment breakdown of principal and interest

• To estimate future property taxes

• To calculate the value of home equity

• To determine the total cost of a loan

What is one disadvantage of renting a home instead of buying?

• Limited flexibility to move

• No equity is built in the property

• Higher monthly payments compared to owning

• Greater responsibility for maintenance

What is the benefit of early FAFSA completion?

• Access to exclusive grants and scholarships

• Guaranteed approval for all aid programs

• Automatic reduction in tuition costs

• Lower interest rates on loans

What is an advantage of public colleges over private colleges?

• Higher graduation rates

• Lower tuition costs for in-state students

• More financial aid opportunities

• Guaranteed job placement after graduation