AnswersSNHS NV-Civics and EconomicsUnderstanding College Savings

Understanding College Savings Answers

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1
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Kevin is in 8th grade and he wants to attend college. He claims he needs to research how much college will cost for his chosen degree and fill out the FAFSA before he can prepare and save for college. Which statement about his claim is correct?

He needs to know how much of his college expenses will be covered so he knows how much to save.
Option
By filling out the FAFSA and sending it in, he will not have to pay anything because grants and scholarships will cover the costs.
Option
It is never too early to start saving for college. Even if he earns scholarships, he could use the money for other expenses. ✓ Correct
Option
It is too late to save for college. His parents should have started a college savings account when he entered kindergarten.
Option
2
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Jorge is attending college next year. He just got information on the college costs and the financial aid package the college is offering. Jorge knows his parents can contribute $4,500 each year. Jorge’s College Costs & Financial Aid Package per YearCostsFinancial Aid PackageTuition & FeesGrants & Scholarship$26,000$18,500Room & BoardWork-Study$12,500$8,500How much will Jorge need to pay each year from his own savings and from loans?

A
$3,000
B
$7,000
C
$7,500
D
$11,500
3

Martha will be entering high school in a couple of years. Which steps should she take to ensure she has money to pay for college? Check all that apply.

She should start or add to a college savings account so it can grow with deposits and earned interest. ✓ Correct
Option
She should ask her parents if they have a college savings account set up for her.
Option
She should work to maintain high grades throughout school so she can qualify for scholarships.
Option
She should get involved in extracurricular activities like clubs and sports so she can discover what she enjoys and qualify for scholarships.
Option
She should fill out the FAFSA immediately so she does not miss grants or scholarships she qualifies for.
Option
She should wait until her senior year of high school to start thinking about how to pay for college.
Option
4

Elisa is nearing graduation. She just met with her counselor and he showed her this information.Elisa’s College Costs & Payment Options per YearCostsMethods of PaymentTuition & FeesGrants & Scholarship$9,500$9,500Room & BoardWork-Study$11,500$8,000If she pays the balance with a student loan, how much will she need to borrow for all four years?

A
$0
B
$3,500
C
$11,500
D
$14,000
5

How are loans and grants different?

A
Loans must be repaid, while grants are like gifts.
B
Grants must be repaid, while loans are like gifts.
C
By filling out the FAFSA, students can find out if they qualify for grants, but not loans.
D
By filling out the FAFSA, students can find out if they qualify for loans, but not grants.
6

Annalise received financial aid offers from two universities. Financial Analysis for Option ACosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$10,000$7,000Room & BoardWork-Study$11,500$4,000Financial Analysis for Option BCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$28,000$18,000Room & BoardWork-Study$9,000$4,000Which statement about the costs per year is true?

A
Option A will save her $4,500.
B
Option B will save her $7,000.
C
Option B will save her $11,000.
D
Option A will save her $15,500.
8

Which form must be filled out and submitted to determine the types and amount of financial aid available to a student?

FAFSA
Option
1080EZ
Option
voter registration form
Option
HIPAA notice
Option
9

Alex is nearing graduation. His counselor showed him this information. Alex’s College Costs & Payment Options per YearCostsMethods of PaymentTuition & FeesGrants & Scholarship$10,100$12,500Room & BoardWork-Study$11,750$8,000If his parents cannot help Alex with college, and two of his scholarships will be awarded to other students if he does not accept them immediately, which is the best option for him?

A
He could work each summer to earn the $1,350 difference.
B
He could wait a year for college and earn the difference.
C
He could abandon his plans for college because he does not have enough money.
D
He could take out a student loan for the difference of $1,350, plus an extra $2,000 a year for mad money.
10

Which methods of paying for college do not require repayment? Check all that apply.

A
college savings
B
student loans
C
grants
D
scholarships
E
work-study
11

Marcel is nearing graduation. He just met with his counselor and she showed him this information. Marcel’s College Costs & Payment Options per YearCostsMethods of PaymentTuition & FeesGrants & Scholarships$12,500$6,500Room & BoardWork-Study$8,200$9,800If he pays the balance with a student loan, how much will he need to borrow for his first year?

A
$4,400
B
$6,000
C
$10,900
D
$14,200
12

Stephen plans to attend community college for two years. His expenses are only $2,000 each year, because his parents are paying the rest. He earned a one-time $900 scholarship. How much will he need to pay for the two years of college from his savings or by working?

A
$1,100
B
$2,200
C
$3,100
D
$4,900
13

Desmond told his two friends, Marley and Brianna, that he was awarded a $10,000 grant for college if he becomes a math or science teacher. Desmond wants to teach physics.Marley told him he should take the grant. Brianna told him not to take the grant. Which statement about their advice is true?

A
Marley is correct because a grant is like a gift and he can still get scholarships or loans to pay for the rest of his expenses.
B
Marley is correct because he can take the grant and then study whatever he chooses without paying it back if he changes his mind about his career.
C
Brianna is correct because he cannot get scholarships if he takes the grant and scholarships would pay more of his education costs.
D
Brianna is correct because grants are like loans and must be paid back. He should wait and see what scholarships and work-study programs he qualifies for.
14

Roderick is in 11th grade and wants to attend college to become a marine biologist. He knows he will need funds. What should he do to begin the process of planning for paying for his education?

A
He could ask his friends to donate to an account for his college fees.
B
He could fill out a FAFSA form to determine what financial aid he would qualify for.
C
He could quit the sports and clubs he is involved in to earn more money at an after-school job.
D
He could graduate from high school and then work until he has enough money to pay for college.

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