AnswersSNHS NV-Civics and EconomicsUnderstanding College Savings

Understanding College Savings Answers

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1
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Which statement best defines a grant?

A
A grant is an educational plan in which students alternate between studying for school and gaining work experience.
B
A grant is a loan offered to students to help pay for education-related expenses.
C
A grant is money given by an organization for a specific purpose.
D
A grant is a loan offered to anyone who is thinking about attending college.
3

What else can Brian do to help pay for college?✔ start saving money in an accountdrop out of school and get a jobask his friends to pay for his textbooks

A
✔ start saving money in an account
B
drop out of school and get a job
C
ask his friends to pay for his textbooks
4

Marcus is in seventh grade. He has decided that he wants to go to college when he graduates from high school. What are the best things Marcus can do to help pay for his college education? Select all that apply.

A
Marcus could open a savings account and start saving money.
B
Marcus could ask his neighbors to help pay his college tuition.
C
If possible, Marcus’s parents could help him pay for his college expenses.
D
Marcus could ask the college to let him attend for free.
E
Marcus could drop out of high school, get a job, and save his tuition first.
5

Question text not available

Answers:
Selection 1:$8,050
Selection 2:$5,400
Selection 3:$2,650
6

What is the first step Brian should take? What form should Brian complete? What else can Brian do to help pay for college?

Answers:
Selection 1:visit the Office of Federal Student Aid’s website and complete an application form
Selection 2:a FAFSA form
Selection 3:start saving money in an account
8

Liam and Robert are discussing how they will pay for college. Liam says the interest rate on a student loan is higher than on other types of loans. Robert says work-study options are like loans because you have to pay the money back. Who is correct? Explain.

Answer:

/Explanation: Liam is incorrect. The interest rate on student loans is typically lower than on other types of loans. Robert is also incorrect. Work-study is like a job. You work to earn money and you do not have to pay it back.

9

What is one major difference between a grant and a loan?

A
If you receive a grant, you cannot also get a scholarship. However, if you receive a loan, you can also get a scholarship.
B
A grant is considered a financial gift. Unlike a loan, you do not have to pay it back.
C
A loan is considered a financial gift. Unlike a grant, you do not have to pay it back.
D
You can apply for loans using the FAFSA, but you cannot use the FAFSA to apply for grants.
10

Which of these statements about financial aid are true? Select all that apply.

A
Most student loans from the government have a lower interest rate than other types of loans.
B
If you receive a grant, you cannot also get a scholarship.
C
The FAFSA helps the government determine how much financial aid you need.
D
Work-study programs provide job experience, but no pay.
E
Money from scholarships must be paid back.
F
The FAFSA is available on paper and online.
14

Justin’s plan doesn’t cover his costs completely. What are his options for covering the rest of his costs? Select all that apply.

A
He could try to save more money.
B
He could get a student loan for the extra amount he needs.
C
He could apply for a scholarship.
D
He could ask his friends to loan him money.
E
He could ask his family to contribute.

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