Financial Aid for College: Scholarships, Grants, Loans, and Work-Study

Question 1

In the context of student services, which ethical principle holds the highest importance for financial aid administrators to uphold?

Accepted Answer

Maintaining the privacy of student information

Answer

Approving financial aid applications without careful review

Answer

Favoring personal connections over professional duties

Question 2

Defaulted student loans can have serious consequences. Which of the following is a potential repercussion of defaulting on student loans?

Accepted Answer

Loss of eligibility for future financial aid

Accepted Answer

Withholding of tax refunds

Accepted Answer

Imposition of late fees and interest charges

Answer

Indefinite deferment of loan payments

Question 3

Which of the following is not a type of financial aid offered to students?

Accepted Answer

Tax return

Answer

Work-study program

Answer

Scholarship

Answer

Loan

Question 4

What is the main purpose of the Free Application for Federal Student Aid (FAFSA)?

Accepted Answer

To determine a student's eligibility for federal financial aid

Answer

To receive a tax refund

Answer

To apply for state financial aid programs

Question 5

Which of the following is a defining characteristic of a scholarship?

Accepted Answer

Does not need to be repaid

Answer

Has a low interest rate

Answer

Must be repaid within a specific timeframe

Answer

Requires the student to work for the university

Question 6

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

Accepted Answer

The government pays the interest on a subsidized loan while the student is in school.

Answer

A subsidized loan has a longer repayment period than an unsubsidized loan.

Answer

An unsubsidized loan has a lower interest rate than a subsidized loan.

Question 7

What is the primary purpose of a work-study program?

Accepted Answer

To provide students with part-time employment to help pay for college expenses

Answer

To provide students with academic tutoring and support

Answer

To help students find internships

Question 8

Which of the following factors is used to calculate a student's Expected Family Contribution (EFC)?

Accepted Answer

Parental income and assets

Answer

Student's grades

Answer

Student's extracurricular activities

Answer

Student's age

Question 9

What is the name of the federal program that provides grants to students from low-income backgrounds?

Accepted Answer

Pell Grant

Answer

Iraq and Afghanistan Service Grant

Answer

SEOG Grant

Answer

TEACH Grant

Question 10

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

Accepted Answer

Wage garnishment

Answer

Improved credit score

Answer

No consequences

Answer

Increased financial aid eligibility

Question 11

Which of the following is typically NOT a type of financial aid available to college students?

Accepted Answer

Personal savings

Answer

Loans

Answer

Grants

Answer

Scholarships

Question 12

What is the primary purpose of a financial aid application?

Accepted Answer

To determine a student's eligibility for financial assistance.

Answer

To calculate the student's cost of attendance.

Answer

To provide the educational institution with detailed information about the student's financial situation.

Question 13

Which of the following correctly describes a Pell Grant?

Accepted Answer

A need-based grant funded by the federal government, not subject to repayment.

Answer

A loan that must be repaid with interest.

Answer

A merit-based scholarship funded by private organizations.

Question 14

What is the key difference between subsidized and unsubsidized loans?

Accepted Answer

Subsidized loans are based on financial need, and the government pays the interest while the student is enrolled at least half-time in school.

Answer

Unsubsidized loans are based on financial need, and the student pays the interest from the time the loan is disbursed.

Question 15

What is the primary purpose of a work-study program?

Accepted Answer

To provide students with part-time employment opportunities to help pay for college expenses.

Answer

To provide students with free tuition and housing.

Question 16

What is the primary responsibility of a financial aid counselor?

Accepted Answer

To provide guidance and assistance to students in navigating the financial aid process.

Answer

To determine a student's eligibility for financial aid.

Answer

To make decisions on financial aid awards.

Question 17

What does the acronym FAFSA stand for?

Accepted Answer

Free Application for Federal Student Aid

Answer

Federal Application for Student Scholarships

Answer

Financial Aid Student Assistance Form

Answer

Federal Aid for Student Success Act

Question 18

What is the main purpose of a financial aid award letter?

Accepted Answer

To inform the student of the types and amounts of financial aid they have been awarded.

Answer

To provide detailed information about the student's financial situation.

Answer

To calculate the student's cost of attendance.

Question 19

What is the most effective way for a student to stay informed about changes in financial aid regulations?

Accepted Answer

Contacting the financial aid office regularly

Answer

Talking to friends and family

Answer

Checking the school website periodically

Answer

Reading the student handbook

Question 20

A student is offered $5,000 to help pay for college that does not need to be repaid. Which type of financial aid is this?

Accepted Answer

Grant

Answer

Unsubsidized Loan

Answer

Scholarship

Answer

Work-study

Question 21

A student is awarded a $10,000 scholarship based on their academic achievements. This scholarship is renewable for four years as long as the student maintains a certain GPA. Which of the following is NOT a likely factor in determining the student's eligibility for renewal?

Accepted Answer

The student's family income

Answer

The student's major

Answer

The student's enrollment status

Answer

The student's GPA

Question 22

A student is considering taking out a subsidized student loan. Which of the following is a key characteristic of this type of loan?

Accepted Answer

Interest does not accrue while the student is enrolled at least half-time.

Answer

It requires a credit check.

Answer

It has a fixed interest rate.

Question 23

A student is working part-time on campus as part of their financial aid package. What type of financial aid is this?

Accepted Answer

Work-Study

Answer

Loan

Answer

Grant

Question 24

Which of the following is NOT a component of the FAFSA (Free Application for Federal Student Aid)?

Accepted Answer

Current credit score

Answer

Student's financial assets

Answer

Student's Social Security Number

Answer

Parent/guardian income

Question 25

A student has received a $2,000 grant and a $3,000 loan. How much of this aid is considered 'gift aid'?

Accepted Answer

$2,000

Answer

$5,000

Answer

None of the above

Answer

$3,000

Question 26

A student is considering applying for a private student loan. What is a significant difference between private loans and federal loans?

Accepted Answer

Private loans often have variable interest rates.

Answer

Private loans are only available to undergraduate students.

Answer

Private loans are always interest-free.

Answer

Private loans are not subject to credit checks.

Question 27

A student is awarded a $1,000 scholarship for their academic achievement and a $2,000 grant based on their family income. What is the total amount of *need-based* aid the student has received?

Accepted Answer

$2,000

Answer

$3,000

Answer

Cannot be determined from the information given

Answer

$1,000