1. Making the choice to spend money on post secondary education pays off in the long run because:
- a. You or your parents can write it off your taxes.
- b. You can get grants and scholarships to pay for post secondary education while you are there.
- c. The salary you will earn with a degree will pay back the cost of college over your career.
- d. There are less expensive options for obtaining a post secondary education.
Best Answer:
- c. The salary you will earn with a degree will pay back the cost of college over your career.
Explanation: Investing in post-secondary education is considered worthwhile because, over a career, the higher salary associated with having a degree can offset the initial cost of college.
2. Dimitri’s counselor told him that post secondary education can be expensive but can pay off in the long run, what does that mean?
- a. The salary you will earn with a degree will pay back the cost of college over your career.
- b. You can get grants and scholarships to pay for post secondary education while you are there.
- c. There are less expensive options for obtaining a post secondary education.
- d. All of the above.
Best Answer:
- a. The salary you will earn with a degree will pay back the cost of college over your career.
Explanation: This statement suggests that the potential earnings from a career requiring a post-secondary degree can outweigh the costs incurred during education.
3. It does not make sense to avoid post secondary education because of its cost since in the long run:
- a. You or your parents can write it off your taxes.
- b. The salary you will earn with a degree will pay back the cost of college over your career.
- c. You can get grants and scholarships to pay for post secondary education while you are there.
- d. There are less expensive options for obtaining a post secondary education.
Best Answer:
- b. The salary you will earn with a degree will pay back the cost of college over your career.
Explanation: Avoiding post-secondary education solely based on cost may not make sense, as the potential salary from a career requiring a degree can justify the initial investment.
4. What are the benefits of attending a local community college?
- a. It is cheaper to earn an Associate’s degree at a community college and then transfer to a four-year college to finish.
- b. You can live at home and save dorm fees while earning an Associate’s degree.
- c. Choosing a local community college within closer driving range saves on transportation costs.
- d. All of the above.
Best Answer:
- d. All of the above.
Explanation: Attending a local community college can be cost-effective, offering a more affordable path to earning an Associate’s degree. Additionally, living at home and reducing transportation costs contribute to overall savings.
5. Cutting down on costs by earning an Associate’s degree first and then transferring to a four-year college or university can be done by going to what type of higher education institution?
- a. A local community college.
- b. A trade school.
- c. A specialized training program.
- d. Both b and c are correct.
Best Answer:
- a. A local community college.
Explanation: Earning an Associate’s degree at a local community college before transferring to a four-year institution is a common and cost-effective approach.
6. Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. What is his best option for affording a Bachelor’s Degree?
- a. He can enroll in a trade school and transfer his courses later.
- b. He can attend a specialized training program and transfer a couple of his courses.
- c. He can attend the local community college whose courses transfer to the public four-year college.
- d. None of these are correct.
Best Answer:
- c. He can attend the local community college whose courses transfer to the public four-year college.
Explanation: Choosing a local community college with transferable courses to a public four-year college is a viable option for Andrew, as it provides a more affordable path to earning a Bachelor’s Degree.
7. Which is NOT considered an additional cost beyond tuition for higher education?
- a. Textbooks and supplies
- b. Academic counseling
- c. Room and board
- d. Transportation
Best Answer:
- b. Academic counseling
Explanation: Academic counseling is typically considered a service included in tuition and is not an additional cost.
8. Textbooks, transportation and room and board are all…
- a. included in the price of attending a college or university.
- b. additional costs for attending a college or university.
- c. included in a school’s tuition.
- d. usually offered to students who stay on campus.
Best Answer:
- b. additional costs for attending a college or university.
Explanation: Textbooks, transportation, and room and board are additional costs beyond tuition that students may incur while attending college.
9. Which of these additional costs will most likely be the most expensive?
- a. Textbooks and supplies
- b. Academic counseling
- c. Room and board
- d. Transportation
Best Answer:
- c. Room and board
Explanation: Among the given options, room and board are typically the most expensive additional costs for students attending college.
10. Preparing to pay for higher education can start in 9th grade or earlier by…
- a. applying for scholarships.
- b. opening a 529 plan.
- c. taking out student loans.
- d. applying for grants.
Best Answer:
- b. opening a 529 plan.
Explanation: Starting a 529 plan in 9th grade or earlier is a proactive way to save money for higher education as it provides tax advantages.
11. A 529 plan can help you save more money than a traditional savings account because…
- a. it is tax-free.
- b. it is given to you at a very young age.
- c. the interest rates are considerably better.
- d. it is linked to the stock market.
Best Answer:
- a. it is tax-free.
Explanation: A 529 plan offers tax advantages, allowing for tax-free growth on contributions when used for qualified education expenses.
12. Which is a tax-free savings account that can only be used for educational expenses?
- a. Federal grants
- b. Merit-based scholarships
- c. Merit-based scholarships
- d. A 529 plan
Best Answer:
- d. A 529 plan
Explanation: A 529 plan is a tax-free savings account specifically designed for educational expenses.
13. Which of the following is NOT true about the Free Application for Federal Student Aid (FAFSA)?
- a. You can fill the form out online or on paper.
- b. The earliest you can submit your FAFSA is January 1st of each year.
- c. Each state may have a different deadline for state financial aid.
- d. You can fill out the FAFSA if you are an independent or a dependent.
Best Answer:
- b. The earliest you can submit your FAFSA is January 1st of each year.
Explanation: The correct statement is that the earliest you can submit the FAFSA is October 1st of each year.
14. Which of the following is true about the Free Application for Federal Student Aid (FAFSA)?
- a. The earliest you can submit your FAFSA is October 1st of each year.
- b. The form is available online or on paper.
- c. States may have different deadlines for applying for state aid.
- d. All of the above
Best Answer:
- d. All of the above
Explanation: All the given statements about the FAFSA are true, including the October 1st start date, online or paper options, and varying state deadlines.
15. All of the following are true about the Free Application for Federal Student Aid (FAFSA) EXCEPT:
- a. The form is only available online.
- b. The earliest you can submit your FAFSA is October 1st of each year.
- c. You can fill out the FAFSA if you are independent or dependent.
- d. States have different deadlines for applying for state aid.
Best Answer:
- a. The form is only available online.
Explanation: The FAFSA form is available both online and on paper, making option (a) incorrect.
16. Earning a degree can be expensive but which example shows why it might be worth it?
- a. You are more likely to earn more money over your lifetime than if you did not have a degree.
- b. A degree allows you to earn a salary instead of an hourly wage.
- c. You can get a job that pays back the costs of a degree.
- d. A high school diploma allows you to earn money instead of going into debt.
Best Answer:
- a. You are more likely to earn more money over your lifetime than if you did not have a degree.
Explanation: Earning a degree is often justified by the potential for increased lifetime earnings compared to not having a degree.
17. The fact that you are more likely to earn more money over your lifetime with a post secondary degree means…
- a. you should not be concerned about the amount of debt you go into to pay for it.
- b. the more money you pay for the degree guarantees a higher salary.
- c. the cost of a post secondary degree is worth it.
- d. the cost of a post secondary degree should be avoided.
Best Answer:
- c. the cost of a post secondary degree is worth it.
Explanation: The increased earning potential associated with a post-secondary degree often justifies the initial cost.
18. Earning a degree can be expensive but which example shows why it might be worth it?
- a. Federal student loans are offered at low interest rates which makes it more affordable.
- b. Expensive degrees guarantee a low paying job afterwards.
- c. Individuals with a bachelor’s degree typically earn a higher annual salary than those without one.
- d. A high school diploma allows you to earn money instead of going into debt.
Best Answer:
- c. Individuals with a bachelor’s degree typically earn a higher annual salary than those without one.
Explanation: The value of earning a degree is often reflected in the higher average annual salary of individuals with a bachelor’s degree compared to those without.
19. Which of the following answers lists 4 year colleges from generally the least expensive to most expensive?
- a. In-state public university, private university, out-of-state public university
- b. In-state public university, out-of-state public university, private university
- c. Private university, in-state public university, out-of-state public university
- d. Out-of-state public university, private university, in-state public university
Best Answer:
- b. In-state public university, out-of-state public university, private university
Explanation: In general, in-state public universities are less expensive than out-of-state public universities, and private universities are often the most expensive.
1. Living on campus while earning your degree can help you save money on…
a. transportation. b. room and board. c. books and supplies. d. tuition. Answer: b. room and board. Explanation: Living on campus often includes room and board, which can save money compared to off-campus housing. It eliminates the need for commuting, and on-campus housing may be more cost-effective than renting off-campus.
2. What type of federal funding is free money, but is based on financial need only?
a. Federal grants b. All federal scholarships c. The 529 Plan d. None of these are correct Answer: a. Federal grants Explanation: Federal grants, such as Pell Grants, are need-based financial aid that does not require repayment. They are awarded to students based on their financial need, as determined by the Free Application for Federal Student Aid (FAFSA).
3. Federally-funded grants require the student to…
a. earn above average grades. b. have a membership in a high school club. c. perform volunteer work for a local community agency. d. have financial need only. Answer: d. have financial need only. Explanation: Federally-funded grants are primarily based on financial need. Unlike scholarships, they are not contingent on academic achievement, club memberships, or volunteer work.
4. Maria is a high school senior. She wants to go to the local community college and become a nurse. Her grades are average, but she comes from a low-income family. What could she do to afford the next step in her dream to become a nurse?
a. Maria has to wait until she saves up enough money to pay for tuition. b. Maria could apply for federal grants to help pay for college. c. Maria can apply for need-based scholarships. d. Both b and c are correct. Answer: d. Both b and c are correct. Explanation: Maria can apply for federal grants, which are need-based, and she can also explore need-based scholarships to help cover the costs of her education.
5. Everyone interested in post-secondary education should complete the Free Application for Federal Student Aid (FAFSA) because…
a. it gives you access to private student loans. b. it gives you access to private student loans. c. it allows you to be eligible for federal student aid and other scholarships and grants. d. it is a requirement for college admission. Answer: c. it allows you to be eligible for federal student aid and other scholarships and grants. Explanation: The FAFSA is a crucial step for accessing federal student aid, grants, and various scholarships. It helps determine eligibility for financial assistance.
6. Which of the following is NOT a reason to complete the Free Application for Federal Student Aid (FAFSA)?
a. It allows you to be eligible for early admission. b. It allows you to be eligible for federal student aid. c. It allows you to be eligible for some grants. d. It allows you to be eligible for many scholarships. Answer: a. It allows you to be eligible for early admission. Explanation: The FAFSA is primarily for financial aid eligibility and is not related to the college’s admission process. It focuses on determining financial need for student aid programs.
7. All of the following are true about why it is important to complete the Free Application for Federal Student Aid (FAFSA) process EXCEPT:
a. It allows you to be eligible for federal student aid. b. It allows you to be eligible for early admission. c. It allows you to be eligible for some grants. d. It allows you to be eligible for many scholarships. Answer: b. It allows you to be eligible for early admission. Explanation: The FAFSA is not related to the college’s admission process or early admission. Its primary purpose is to determine eligibility for federal student aid, grants, and scholarships based on financial need.