How much do you know about college financial aid? Take this financial aid quiz to find out.
1. If your adjusted gross income exceeds $120,000, you won’t be eligible for financial aid at any school.
2. After receiving a financial aid package from a college, the amount can only be increased for dire reasons such as a death, divorce or loss of job in a family.
3. Which assets aren’t included in federal financial aid calculations:
A. Retirement accounts.
B. Home equity.
C. Family-owned business with less than 100 full-time employees.
D. None of the above assets are considered in the calculation.
4. Which statement about private student loans isn’t true:
A There is no interest ceiling on private loans.
B. Unlike a federal student loan not everyone will qualify.
C. Private loans routinely have lower interest rates than other student loans.
D. It’s best to borrow through federal student loans first.
5. To be eligible for federal or state financial aid, you must fill out the Free Application for Federal Student Aid.
6. EFC stands for:
A. Estimated Financial Contribution
B. Expedited Free Choice
C. Expected Family Contribution
D. Equal Fiscal Calculation
7. Which are the best college financial aid opportunities, listed from best to worst.
B. Parents Plus Loans
C. Subsidized Stafford
D. Unsubsidized Stafford
E. Private student loan
8. Suppose you graduate with $17,125 in federal students loans that carries a 6.8% interest rate. Which repayment option will cost the least amount of money?
A. Paying $197.08 for 120 months.
B. Paying $152.02 for 180 months.
C. Paying $130.72 for 240 months.
D. The total tab will be the same for all three.
9. Is a Stafford Loan or a Pell Grant at better deal for students?
A. Stafford Loan
B. Pell Grant
Answers: 1) B. 2) B. 3) D. 4) C. 5) A. 6) C. 7) A.,C.,D.,B.,E. 8) A. 9) B.