Test on Paying for College & Student Loans
  • 1. what is the Main Purpose of FAFSA?
A) It helps the government and colleges determine the level of aid for which you qualify.
B) It helps banks and other lenders know what interest rate to charge you for student loans
C) It helps the government and colleges determine whether you are eligible for academic scholarships.
D) It helps colleges and universities determine whether you ca afford on-campus housing.
  • 2. Which is potential advantage of community colleges over private colleges and state universities?
A) They offer more scholarships and grants.
B) They are less expensive
C) They offer more programs
D) They are easier to apply to
  • 3. An academic scholarship is an example of _________.
A) Need-Based Financial Aid
B) A federal government loan program
C) A university work study program.
D) Merit Based Financial Aid
  • 4. When do you usually have to begin paying back federal loans.
A) In your last year of College
B) Within Six Months of Graduation
C) When you get a Full-Time Job
D) When you start to pay taxes.
  • 5. When you start paying back loans, what is the first thing you should pay?
A) The FAFSA
B) The Principal
C) The Work Study
D) The Interest
  • 6. Which of the following is true?
A) Small Private schools charge lower tuition than larger schools.
B) All colleges usually charge lower tuition for students who have federal loans.
C) Private Schools usually charge lower tuition for students who do well in high school.
D) State Schools usually charge lower tuition for students living in the state.
  • 7. Marta wants to go to college, but she is concerned about the cost. Which option would you recommend.?
A) Taking out a federal loan and attending a Private College.
B) Taking out a Private Loan and attending a State College.
C) Taking out a private loan and attending a Private College.
D) Taking out a federal loan and attending a state college.
  • 8. One advantage of federal loans over the bank loans is that federal loans,
A) Have a fixed interest rate.
B) Do not have to be paid back.
C) Can be pair monthly or yearly.
D) Do not affect your credit score.
  • 9. The US Department of Education's Pell Grant is an example is an example of ____________.
A) Merit- Based Financial Aid
B) Need- Based Financial Aid
C) A Federal Government Loan Program
D) A University Scholarship Program
  • 10. The federal government offers subsidized loans to students with __________.
A) A Financial Need
B) Unusual Interests
C) Low Credit Scores
D) Good Grades
  • 11. The FAFSA is __________.
A) A distributor of private student loans.
B) An office where you can make an appointment to discuss federal loan repayment.
C) An application for federal students aid
D) A inexpensive state college.
  • 12. A Student Loan is _________.
A) Money all college students receive to pay for college tuition.
B) Money you can get if you have a high GPA in high school.
C) A gift the government gives you to pay for a very expensive college.
D) Money you can borrow to pay for college that you will have to repay later.
  • 13. Which of the following is a true statement?
A) You never get charged interest on student loans.
B) You can pay back your loan little by little.
C) You have to repay your student loans before you graduate college.
D) You only have to repay half of your original student loan.
  • 14. Interest is the ___________.
A) Fee added to the amount you owe.
B) Total amount of money you can take out in loans.
C) Time it takes you to repay your loan.
D) Initial amount of money you borrowed.
  • 15. The sooner you repay your loan, the __________.
A) More extra money you will spend paying back your loan.
B) More likely you are to default.
C) Less extra money you will spend paying back your loan.
D) Higher the interest rate on the loan will become.
  • 16. Carlo always pays more than his minimum loan payment, so he is ________.
A) Defaulting on his loan.
B) Repaying more of his principal and building up less interest.
C) Paying more fees directly to the bank.
D) Building up more interest and repaying less on principal
  • 17. Money spend on interest _________.
A) Goes toward paying down your original debt
B) Does not go toward repaying the money you initially borrowed.
C) Lowers your principal.
D) Immediately causes you to have bad credit.
  • 18. Brianna has a good credit score. Which of the following is most likely true?
A) Brianna has missed More than 9 months of loan payments.
B) Brianna has a history of paying her bills in full and on time.
C) Brianna has defaulted on her loans recently.
D) Banks will not lend her money.
  • 19. Joseph recently deferred his loans, which means he ________.
A) Never has to repay them.
B) Does not have to repay them for a period of time.
C) Failed to uphold his end of the loan agreement.
D) Missed too many payments in a row.
  • 20. Will recently defaulted on his loans. He most likely ________.
A) Enrolled in the military.
B) Paid his loan payments on time.
C) Paid more than his minimum payments.
D) Missed more than 9 months of loan payments.
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