Higher Education and Financial Planning Quiz

Test your knowledge on financial aid! Explore types of aid, FAFSA, student loans, and college savings plans in this quiz.

Practice Learn Test

Which of the following types of financial aid does not require repayment?

Scholarships

Student loans

Work-study programs

Grants

What is the FAFSA?

A type of student loan

A scholarship program

A federal financial aid application

A grant program

What is the primary purpose of a student budget?

To track spending after graduation

To minimize expenses during college

To manage financial aid applications

To calculate expected family contribution

What is the primary purpose of a 529 college savings plan?

To provide tax deductions for educational expenses

To guarantee a fixed return on investment

To save and invest for future college expenses

To provide financial aid for low-income families

Which of the following statements about Pell Grants is true?

Pell Grants are only available to undergraduate students.

Pell Grants are need-based financial aid that does not need to be repaid.

Pell Grants are available to all students regardless of financial need.

Pell Grants cover all educational expenses for eligible students.

Which of the following is a potential consequence of defaulting on student loans?

Increased credit score

Lower interest rates

Wage garnishment

Access to more loans

What is the 529 plan primarily used for?

Retirement savings

Investing in stocks

Paying for college expenses

Buying a home

What does the term 'Expected Family Contribution (EFC)' refer to in the context of financial aid?

The amount of money a family is expected to pay for college expenses

The total cost of attendance at a college or university

The amount of money a student is expected to earn from part-time work

The maximum amount of federal loans a student can receive

Which of the following is NOT a common method to save for college education?

529 plan

Roth IRA

Coverdell ESA

Savings account

#10

What does the term 'grace period' mean in the context of student loans?

The period during which interest accrues on the loan

The time before repayment begins after graduation or leaving school

The period when no interest is charged on the loan

The duration of a student's enrollment in college

#11

What is the difference between subsidized and unsubsidized student loans?

Interest accrues during school for subsidized loans but not for unsubsidized loans

Unsubsidized loans have lower interest rates than subsidized loans

Subsidized loans require repayment while unsubsidized loans do not

There is no difference between subsidized and unsubsidized loans

#12

What is the significance of the Free Application for Federal Student Aid (FAFSA) deadline?

It determines eligibility for state financial aid only

It affects the amount of federal grants a student can receive

It impacts the interest rates on student loans

It determines eligibility for federal financial aid and some state aid programs

#13

Which of the following is NOT typically considered a qualified education expense for 529 plans?

Tuition and fees

Room and board

Textbooks

Travel expenses

#14

What is the difference between a subsidized and an unsubsidized federal student loan?

Subsidized loans are based on financial need, while unsubsidized loans are not

Subsidized loans require repayment during school, while unsubsidized loans do not

Subsidized loans have lower interest rates than unsubsidized loans

There is no difference between subsidized and unsubsidized loans

#15

What is the typical repayment term for federal student loans?

10 years

20 years

30 years

Varies depending on the loan program