Financing Higher Education and Affordability Quiz

Baking cookies is not a common source of financing for higher education.

The FAFSA stands for Free Application for Federal Student Aid.

A scholarship is financial assistance awarded to students based on academic or other achievements to help pay for education.

A loan is an amount of money borrowed for a specific period of time, often with interest.

A grant is a financial aid award that does not need to be repaid.

Unsubsidized loans typically accrue interest while the student is still in school.

Default means failing to make payments as outlined in the loan agreement.

Sticker price refers to the total cost of attending a college or university for one academic year, including tuition, fees, room, and board.

The Department of Education is responsible for overseeing the federal student aid program in the United States.

Net price refers to the portion of the cost of attending a college or university that is covered by financial aid and scholarships, reducing the amount families actually pay.

The maximum number of years typically allowed for the repayment of federal student loans is 30 years.

The Federal Work-Study Program allows eligible students to work part-time to help pay for their education.

Flexible use of funds is NOT a potential benefit of a 529 college savings plan.

All of the above are potential consequences of defaulting on student loans.

There is no maximum income level for eligibility to receive a Federal Pell Grant.