2025 CCR FINAL UPDATED ACTUAL
EXAM Questions And CORRECT Answers
Cosigner - CORRECT ANSWERS Someone who legally agrees to take responsibility for a person's
debt if they cannot repay it
Cost Of Attendance - CORRECT ANSWERS Total expense of going to college which may include
tuition, room and board, fees, books and supplies, transportation, health insurance, etc. Also known as
Sticker Price or a school's published price.
Default - CORRECT ANSWERS Long-term failure to repay a loan according to the terms agreed
to, which has a substantial negative impact on the borrower's credit score.
Deferment - CORRECT ANSWERS A process that allows a borrower to pause their federal student
loan payments; interest does NOT accrue during this time period on subsidized loans.
Delinquency - CORRECT ANSWERS Describes the status of being behind on one or more loan
payments.
Direct Subsidized Loan - CORRECT ANSWERS A federal student loan available to undergraduate
students; the federal government pays interest on the loan as long as the student is in school at least part-
time.
Direct Unsubsidized Loan - CORRECT ANSWERS A federal student loan available to
undergraduate and graduate students; the student is responsible for paying the interest during the time
they are in school, which means they must pay that interest while studying or have it rolled into the
principal amount of their loan.
Entrance Counseling - CORRECT ANSWERS A mandatory information session which takes place
before a student receives their first federal student loan. It explains their rights and responsibilities as a
student borrower.
, Expected Family Contribution (EFC) - CORRECT ANSWERS An index number used to determine
your eligibility for federal student financial aid. This number results from the financial information you
provide in your Free Application for Federal Student Aid (FAFSA) form. It's reported to you on your
Student Aid Report (SAR).
Federal Student Aid - CORRECT ANSWERS The largest form of student aid in the country;
federal aid programs come in the form of government grants, loans, and work-study.
Fixed-Rate Loan - CORRECT ANSWERS A loan with an interest rate that does not change over
the life of the loan.
Forbearance - CORRECT ANSWERS A process that allows a borrower to pause their federal
student loan payments; interest continues to accrue during this time period.
Free Application For Federal Student Aid (FAFSA) - CORRECT ANSWERS A free online
application that current or prospective college students can submit each year to determine their eligibility
for financial aid.
Grants - CORRECT ANSWERS Student aid coming from the state or federal government, the
school, or from private sources that does not need to be repaid.
Gift Aid - CORRECT ANSWERS Financial aid that does not have to be paid back, such as
scholarships and grants.
Loan Refinancing - CORRECT ANSWERS A process that REPLACES one or more existing
federal or private loans with a new private student loan, ideally with a lower interest rate.
Net Price - CORRECT ANSWERS The actual cost a student pays to attend a school, calculated as
the sticker price minus grants and scholarships.
EXAM Questions And CORRECT Answers
Cosigner - CORRECT ANSWERS Someone who legally agrees to take responsibility for a person's
debt if they cannot repay it
Cost Of Attendance - CORRECT ANSWERS Total expense of going to college which may include
tuition, room and board, fees, books and supplies, transportation, health insurance, etc. Also known as
Sticker Price or a school's published price.
Default - CORRECT ANSWERS Long-term failure to repay a loan according to the terms agreed
to, which has a substantial negative impact on the borrower's credit score.
Deferment - CORRECT ANSWERS A process that allows a borrower to pause their federal student
loan payments; interest does NOT accrue during this time period on subsidized loans.
Delinquency - CORRECT ANSWERS Describes the status of being behind on one or more loan
payments.
Direct Subsidized Loan - CORRECT ANSWERS A federal student loan available to undergraduate
students; the federal government pays interest on the loan as long as the student is in school at least part-
time.
Direct Unsubsidized Loan - CORRECT ANSWERS A federal student loan available to
undergraduate and graduate students; the student is responsible for paying the interest during the time
they are in school, which means they must pay that interest while studying or have it rolled into the
principal amount of their loan.
Entrance Counseling - CORRECT ANSWERS A mandatory information session which takes place
before a student receives their first federal student loan. It explains their rights and responsibilities as a
student borrower.
, Expected Family Contribution (EFC) - CORRECT ANSWERS An index number used to determine
your eligibility for federal student financial aid. This number results from the financial information you
provide in your Free Application for Federal Student Aid (FAFSA) form. It's reported to you on your
Student Aid Report (SAR).
Federal Student Aid - CORRECT ANSWERS The largest form of student aid in the country;
federal aid programs come in the form of government grants, loans, and work-study.
Fixed-Rate Loan - CORRECT ANSWERS A loan with an interest rate that does not change over
the life of the loan.
Forbearance - CORRECT ANSWERS A process that allows a borrower to pause their federal
student loan payments; interest continues to accrue during this time period.
Free Application For Federal Student Aid (FAFSA) - CORRECT ANSWERS A free online
application that current or prospective college students can submit each year to determine their eligibility
for financial aid.
Grants - CORRECT ANSWERS Student aid coming from the state or federal government, the
school, or from private sources that does not need to be repaid.
Gift Aid - CORRECT ANSWERS Financial aid that does not have to be paid back, such as
scholarships and grants.
Loan Refinancing - CORRECT ANSWERS A process that REPLACES one or more existing
federal or private loans with a new private student loan, ideally with a lower interest rate.
Net Price - CORRECT ANSWERS The actual cost a student pays to attend a school, calculated as
the sticker price minus grants and scholarships.
