Everfi Lesson 5-9

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 COULD BE WRONG ON SOME OF THESE!!! IF SOME ANSWERS HAVE MORE THAN ONE I DO NOT KNOW THE ANSWER FOR SURE!!!

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

B) Subsidized Federal Loan C) Pell Grant D) None of the above ?

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

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

E) Both A&C

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

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

C) Someone with a 2-year (Associate) degree

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

C) The amount of time you have to pay back your entire student loan amount

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

D) A copy of your completed FAFSA form

Using the FAFSA form, you can apply for:

A) Federal student loans
B) The federal work-study program
C) Private loans
D) Both A & B

D) Both A&B

The Federal Application for Student Aid (FAFSA) form:

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

B) Can only be submitted by mail

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

D) Both A&B

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 and organizations she’s interested in

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.

B) You have the potential to earn LESS money in the future when you continue your education past college

When planning for college, you should consider:

A) Visiting colleges during your junior year.
B) Speaking with your school’s college advisor.
C) Joining an after school club or sports team.
D) All of the above.

D) All of the above

When looking to finance higher education, what is the best order to look for funding sources?

A) Grants/Scholarships – Federal Student Loans – Private Loans
B) Private Loans – Grants/Scholarships – Federal Student Loans
C) Federal Student Loans – Grant/Scholarships – Private Loans
D) Grants/Scholarships – Private Loans – Federal Student Loans

D) Grants/Scholarships – Private Loans – Federal Student Loans

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

A) 1.2 C) 1.6