Which of the following statements about federal student loans is TRUE?

A) The interest rate on your loan will be fixed over time.
B) The interest rates on federal loans and private loans are similar.
C) You can only get federal student loans if you demonstrate financial need.
D) You do not accumulate interest on federal loans.

A) The interest rate on your loan will be fixed over time.
You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any money you receive?

A) Grants
B) 529 plans
C) Federal student loans
D) Scholarships

C) Federal student loans
Which answer best describes an unsubsidized federal loan?

A) You are only responsible for the cost of the loan.
B) You are responsible for paying all the interest that accumulates on your loan.
C) The federal government will only cover the interest accumulated on the loan if you graduate and earn a degree.
D) The federal government will cover the interest accumulated on the loan while you’re in school.

B) You are responsible for paying all the interest that accumulates on your loan.
Which type of loan requires that you pay the interest accumulated during college?

A) Subsidized federal loan
B) Unsubsidized federal loan
C) Pell Grant
D) University scholarship

B) Unsubsidized federal loan
Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.

A) You have the potential to earn more money in the future when you continue your education past high school.
B) You have the potential to earn less money in the future when you continue your education past college.
C) Higher education is not an investment but a debt.
D) Earning potential is not affected by education level.

A) You have the potential to earn more money in the future when you continue your education past high school.
Your brother is starting 9th grade next year and is thinking about going to college. What steps would you recommend he take?

A) Meet his guidance counselor.
B) Join a club or sports team.
C) Fill out the FAFSA form.
D) Both A ; B
E) Both A ; C

D) Both A ; B
After you send in your FAFSA form, what will you receive back?

A) Your Student Aid Report
B) Your IRS Data Retrieval Form
C) A copy of your family’s tax returns
D) A copy of your completed FAFSA form

A) Your Student Aid Report
The Federal Application for Student Aid (FAFSA) form:

A) Is only used to apply for federal unsubsidized loans.
B) Is only used to apply for federal subsidized loans.
C) Can only be submitted by mail.
D) Is the free application for federal student aid.

D) Is the free application for federal student aid.
Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE?

A) You can only apply online.
B) The earliest you can submit your FAFSA application is December 1st.
C) The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
D) Both A & B are true.

C) The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
Which education level has the highest return on investment (ROI)?

A) Bachelor’s Degree (4 years of college)
B) High School Diploma
C) Senior in High School
D) ROI is equal for all of the above.

A) Bachelor’s Degree (4 years of college)
Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?

A) Fill out her FAFSA form
B) Start applying for grants & scholarships
C) Look for school clubs & organizations she’s interested in
D) Sign up for college admission exams

C) Look for school clubs ; organizations she’s interested in
Which loan type requires you to make loan payments while you’re attending school?

A) Unsubsidized federal loan
B) Subsidized federal loan
C) Pell Grant
D) None of the above

D) None of the above
The return on investment (ROI) from education is typically the highest for:

A) A high school graduate
B) A college applicant
C) Someone with a 2-year (Associate) degree
D) Someone with a 4-year (Bachelor’s) degree

D) Someone with a 4-year (Bachelor’s) degree
The Federal Application for Student Aid (FAFSA) form:

A) must be completed by your guidance counselor
B) can only be filled out by U.S. citizens
C) is used to apply for private loans
D) can be submitted on online or by mail

D) can be submitted on online or by mail
Which of the following types of financial aid do not require you to pay the money back?

A) Grants
B) Private Loans
C) Federal Loans
D) All of the above.

A) Grants
When referring to student loans, what is a grace period?

A) The time period between graduating college and starting your first job when you don’t have to pay back student loans
B) The period after graduating or leaving school before you must begin paying back student loans
C) The amount of time you have to pay back your entire student loan amount
D) None of the above

B) The period after graduating or leaving school before you must begin paying back student loans
Which of the following loans will typically offer the lowest interest rate?

A) Payday loan
B) Federal Student Loan
C) Private Loan
D) Both A & B

B) Federal Student Loan
On average, someone with a Bachelor’s degree is estimated to earn ____ times more than someone with a high school diploma.

A) 1.2
B) 1.4
C) 1.6
D) 1.8

C) 1.6
When looking to finance higher education, what is the best order to look for funding sources?
Grants/Scholarships – Federal Student Loans – Private Loans
Which of the following statements about the FAFSA process are TRUE?
You must use the FAFSA to apply for the federal work-study program.
If you apply for federal student loans using the FAFSA form, they will fall into what main categories.
Subsidized ; Unsubsidized
Subsidized Loans
interest paid by gov. while in school. Only avalible to students who demonstrate financial need.
Unsubsidized Loans
type of federal student loan which government does not pay the interest while student is in school. Anyone can get this type of loan.
Grace Period
Do not have to pay while in school, do have to start making payments six months after graduation.
Which of the following statements about federal student loans is TRUE?
The interest rate on your loan will be fixed over time.
You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any money you receive?
Federal student loans
Which answer best describes an unsubsidized federal loan?
You are responsible for paying all the interest that accumulates on your loan.
Which type of loan requires that you pay the interest accumulated during college?
Unsubsidized federal loan
Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.
You have the potential to earn more money in the future when you continue your education past high school.
Your brother is starting 9th grade next year and is thinking about going to college. What steps would you recommend he take?
Meet his guidance counselor and Join a club or sports team.
After you send in your FAFSA form, what will you receive back?
Your Student Aid Report
The Federal Application for Student Aid (FAFSA) form:
Is the free application for federal student aid.
Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE?
The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form.
Which education level has the highest return on investment (ROI)?
Bachelor’s Degree (4 years of college)
Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?
Look for school clubs & organizations she’s interested in
Which loan type requires you to make loan payments while you’re attending school?
A) Unsubsidized federal loan
B) Subsidized federal loan
C) Pell Grant
D) None of the above
None of the above
The return on investment (ROI) from education is typically the highest for:
Someone with a 4-year (Bachelor’s) degree
The Federal Application for Student Aid (FAFSA) form:
can be submitted on online or by mail
Which of the following types of financial aid do not require you to pay the money back?
grants
When referring to student loans, what is a grace period?
The period after graduating or leaving school before you must begin paying back student loans
Which of the following loans will typically offer the lowest interest rate?
Federal Student Loan
On average, someone with a Bachelor’s degree is estimated to earn ____ times more than someone with a high school diploma.
1.6
How to pay for higher education?
loans, scholarships, grants, savings
bachelor’s degree earns 1.6 times more
Someone with a 4-year college degree earns an average of $20,000 more in salary each year
9th grade – Get involved
• Try different clubs and organizations.
• Ask about volunteering opportunities in your school or community.
• Think about what you’re interested in.
9th grade – Make an academic plan
• Start planning out your courses for the next four years.
• Sign up for any pre-requisite courses you need.
• Talk to an adult or school counselor about your plan.
9th grade – ask questions
• Talk to trusted adults, teachers, and school counselor about your goals.
• Look for information on the schools and careers you’re interested in.
• Don’t be afraid to ask questions.
9th grade – Start thinking about saving
• Start planning out your courses for the next four years.
• Sign up for any pre-requisite courses you need.
• Talk to an adult or school counselor about your plan.
10th grade – Sign up for challenging courses
• Register for any required courses.
• Look into ways to earn college credit if possible.
• Take elective classes you’re interested in.
• See if there’s any advanced courses you are interested in taking later on.
10th grade – Look for volunteer and work experience
• Volunteer with projects and causes you find interesting if you have time.
• Look for creative ways to earn money in your free time.
• Continue to focus on your academics and extracurricular activities.
10th grade – Research different colleges
• Go to college fairs.
• Research colleges online.
• Read books about different colleges.
• Talk to family, teachers, and counselors.
10th grade – ask practice college admissions tests
• Start studying for college admission tests.
• Talk to your teachers or counselor about taking a practice test.
• Look online or at the library for free study guides and practice tests.
11th grade – Make college visits
• Talk to friends and adults about colleges you want to visit.
• Call the college’s admission office about visiting.
• Schedule a tour.
• See if you can attend a class.
• Check out hangout spots on campus.
• Talk to students and professors during your visit.
• If you can’t visit, talk to an alum from the school and explore the college website.
11th grade – Sign up for college admission exams
• Register for your college admission exams.
• Call the college admission office for help.
• Register early so you can re-take the exam if you need to.
11th grade – Look into grants and scholarships
Research available grants and scholarships online.
• Talk to your school counselor about your options.
• Start applying for opportunities you qualify for!
11th grade – Get involved
• Sign up for activities and organizations you care about.
• Look into volunteer and work opportunities.
• Volunteer for leadership positions in your clubs.
12th grade – Start Applying
• Get organized – make an application folder.
• Write down all your application deadlines in one place.
• Print out or sign up for your applications online.
• Request a copy of your school transcript.
• Compile all your college admission tests results.
• Start writing your essays.
12th grade – Find ways to pay for college
Next, you’ll learn about the many different ways to pay for your higher education:
• Grants
• Scholarships
• Work-Study Program
• Subsidized ; Unsubsidized Federal Loans
• Private Loans
• FAFSA
12th grade – Ask for recommendations
• Ask teachers early for recommendation letters.
• Gather all the materials the teachers need to write your letter – even stamps if they need to mail it.
• Don’t forget to say “thank you.”
When making college visits, you may be able to…
receive reimbursement for your college visit costs, schedule a tour of the college campus, attend a college class to see what it’s like
Which of the following correctly pairs a financing option with its description?
529 Plan – Money you Save
Which of the following statements about federal student loans is TRUE?
You can only get federal student loans if you demonstrate financial need.
federal work study Program
A part-time employment that can be awarded as part of a federal financial aid package.
Federal student loans
Federal Student Loans are offered directly to students by the government. Federal law sets the maximum
interest rates and fees lenders may charge for these loans. Because of this, their interest rates are lower than
interest rates on other types of loans. Federal Student Loans are awarded to students and the parents of
students based primarily on financial need.
Private loans
loans financed by lenders, like banks, credit unions and sometimes the school you attend

can cost more than feral loan and the interest rates can rise over time

When paying for higher education, always try to find free money sources
– like grants ; scholarships – first. Then look into federal student loans, since these offer low and fixed interest rates.
If you apply for federal student loans using the FASA form, they will fall into two main categories:
subsidized or unsubsidized
Which loan type requires you to pay the interest you accumulate during school?
With unsubsidized loans, you are the one responsible for paying all accumulated interest on your loan.
Subsidized Loan
The federal government will cover – or subsidize – the interest accumulated on the loan while you’re in school. After you graduate, you are responsible for paying the interest on the loan
Unsubsidized Loan
you are responsible for paying all the interest that accumulates on your loan
Which loan type is available to everyone?
unsubsidized loans
Subsidized loan
the federal government pays the accrued interest while you’re in school. This additional financial coverage means that not all student are eligible for subsidized loans. To receive a subsidized loan, you must first demonstrate financial need
Unsubsidized Loan
are available to all students regardless of their financial situation. In general, families that need more help to cover education will typically receive more federal student loan money
Do you have to make payments on federal student loans while you’re in school?
no, Typically, you can wait for six months after you leave school before you have to start paying back these loans. This is called a grace period.
Grace Period – federal student loan advantages
you aren’t expected to make payments on these loans while you’re in school. In fact, you have six months after you graduation to start making payments.
Interest rate – federal student loans advantages
unlike some other loan types, the interest rates on subsidized and unsubsidized loans won’t change over time. The interest rates are fixed over the life of the loan.
Typically, you can wait for six months after you leave school before you have to start paying back these loans. This is called a grace period.
no, The interest rate on subsidized and unsubsidized federal loans is fixed, which means it won’t change.
fasa – citizenship status
Even if you’re not a U.S. citizen, you might still be eligible for federal student if you have a Green Card, a Permanent Resident Card, or meet other requirements. This information goes in section labeled “Alien Registration Number.”
fasa – selective service
only males are required to complete this section.
Under the Selective Service System, all men must register for potential military draft within 30 days of their 18th birthday.
federal work study progerm
The FAFSA is the only way to apply for the federal work-study program. If you’d like to apply, you need to check “yes” for this question.
end-of-year-tax return
At the end of each year, you or your family has to file a tax return with the IRS. If you don’t plan to file your own tax return, you can check the “I’m not going to file” box.
IRS Forms
If you do file your own tax return in the U.S., you’ll use one of the IRS forms – either the 1040, 1040A or 1040EZ. If you’re filing a foreign tax return or a return with a U.S. territory check the corresponding box.
1040A or 1040EZ Eligibilty
Generally, if you make less than $100,000 a year, you’ll be eligible to file a simpler tax form – the 1040A or 1040EZ. You can fill out an example 1040EZ in the Insurance & Taxes module.
free money
Grants and scholarships

are great options because they don’t have to be paid back

money you earn
Jobs are a way to earn money to help pay for school

Federal work-study Program – a part-time employment program that you can apply for using the FAFSA form

money you’ve saved
Personal and family savings – you or your family may have saved money specifically for higher education

529 College Savings Plans
529 college savings plans can be used for any qualified educational expenses. Most states offer a 529 plan.

borrowed money
Ferderal loans – made by the government, ederal loans usually have a fixed interest rate, meaning it won’t change over time.

Private loans are made by lenders like banks, credit unions, state agencies, or schools.

THE FAFSA FORM – PART 1
To apply for federal student loans, grants, and work study, you have to submit a FAFSA form by the January 1st good idea to send in your FAFSA form early, since it may allow you to qualify for more financial aid.
TYPES OF FEDERAL LOANS
Federal student loans are advantageous because they generally have the lowest interest rates and don’t require a credit check. These loans can be subsidized or unsubsidized. To receive a subsidized loan, you must demonstrate financial need. Most student loans have a grace period – usually six months after you graduate – before you have to start repaying your loan.
EDUCATION ROI – PART 1
Higher education loans generally have a positive ROI because you are building skills and work experience that can increase your future earnings. More education is correlated with higher lifetime earnings.
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