Unit 1 Lesson 1 Knowledge Check

Which of the following is NOT a type of financial aid?

• Scholarships

• Grants

• Loans

• Lottery tickets

What is the primary characteristic of scholarships?

• They must be repaid with interest

• They are need-based

• They are awarded based on academic achievements, talents, or other criteria

• They are only available from private lenders

Grants are typically awarded based on:

• Athletic abilities

• Financial need

• Academic achievements

• Artistic talents

What is the main difference between scholarships and loans?

• Scholarships are need-based, while loans are not.

• Scholarships require repayment with interest, while loans do not.

• Scholarships are awarded based on merit, while loans are not.

• Scholarships do not require repayment, while loans do.

Work-study programs allow students to:

• Take out loans to cover their educational expenses.

• Work part-time while attending school to earn money.

• Receive grants based on financial need.

• Access scholarships for their artistic talents.

Which repayment plan adjusts the monthly payments based on the borrower's income and family size?

• Standard Repayment Plan

• Extended Repayment Plan

• Income-Driven Repayment Plan

• Graduated Repayment Plan

Borrowers should contact their loan servicers if they are struggling to make payments on their loans.

• True

• False

Borrowers should accept every loan that is offered to them.

• True

• False

Which repayment plan lasts for 10 years, and results in less interest over time?

• Standard Repayment Plan

• Extended Repayment Plan

• Income-Driven Repayment Plan

• Graduated Repayment Plan

What should you NOT consider when deciding your loans?

• Tuition cost

• Living Expenses

• Educational Costs

• Video games