Semester 1 Exam Review

1. Which of the following statements is TRUE about the value of a college degree?

• A high school graduate can expect to earn about the same as a college graduate
• Every college graduate can expect to have a starting salary over $60,000 right after college
• A college graduate can expect to earn, on average, more than a high school graduate over a career
• A college graduate typically earns less than someone with a high school diploma for the first 10 years

2. During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues…

• Grace period
• Grants and scholarships
• FAFSA
• Forbearance

3. Which of these options lists the types of financial aid from MOST attractive to LEAST attractive?

• Private loans, Federal loans, Work-study, Grants/Scholarships
• Grants/Scholarships, Work-study, Federal loans, Private loans
• Work-study, Grants/Scholarships, Federal loans, Private loans
• Federal loans, Grants/Scholarships, Work-study, Private loans

4. In order to qualify for financial aid, which application must you submit?

• FAFSA
• PLUS
• SAVE
• SAI

5. Which of the formulas below correctly calculates net price?

• Sticker price - student loans = net price
• Grants and scholarships + student loans = net price
• Sticker price - grants and scholarships = net price
• Sticker price + grants and scholarships = net price

6. Which of the following is considered a direct cost of attendance?

• Travel expenses
• Cell phone bill
• Tuition
• Food and entertainment

7. Who receives and uses the information submitted in your FAFSA?

• Your employer to see if you’ll still be able to work while attending college
• Your parents to keep track of your progress at college
• The federal government for tax purposes
• The schools you’ve applied to and your state government to determine your eligibility for financial aid

8. Although it’s not a type of financial aid, how can transferring credits from a community college help save you money on college costs?

• It reduces amount of credits you’ll have to pay for at your 4-year college
• Colleges will pay you for any credits transferred from a community college
• The cost of community college credits can be deducted on your taxes
• Transferring credits from a community college makes you eligible for lower interest rates when taking out federal student loans

9. Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?

• It will cost less to attend College A
• College B is providing Janelle more grants and scholarships
• College A has a lower sticker price than College B
• It will cost less to attend College B

10. All of the following are strategies to reduce the cost of attending college, EXCEPT…

• Attend an in-state college that typically has lower tuition costs for residents of that state
• Spend your first two years at a community college then transfer your credits to a four year college
• Live on campus to reduce the costs associated with commuting to classes every day
• Participate in dual enrollment programs while in high school to reduce the number of classes you need to take in college