Everfi Financial Literacy- Module 5 - Higher Education - Final Quiz Questions and Answers

Everfi Financial Literacy- Module 5 - Higher Education - Final Quiz Questions and Answers 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