AnswersOCPS -2102371-Personal Finance and Money ManagementUnit Test

Understanding College Savings Answers

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1
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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
$1,100
C
$2,200
D
$2,200
E
$3,100
F
$3,100
G
$4,900
H
$4,900
2
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Annika is attending college next year. She just got information on the college costs and the financial aid package the college is offering. Annika knows her parents can contribute $7,500 each year.Annika’s College Costs & Financial Aid Package per YearCostsFinancial Aid PackageTuition & FeesGrants & Scholarship$21,500$10,500Room & BoardWork-Study$13,500$9,000How much will Annika need to pay each year from her own savings and from loans?

A
$8,000
B
$8,000
C
$11,000
D
$11,000
E
$15,500
F
$15,500
G
$17,000
H
$17,000
3

Callie is comparing the costs of two options for her college education.Option A: Complete the first two years of schooling at a community college and then transfer to a university.Option B: Complete all four years of schooling at the university.Community College Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$2,900$800Room & Board $1,250 University Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$9,500$10,000Room & BoardWork-Study$11,500$2,000Which statement about the cost of the options is true?

A
She would save $1,000 by choosing option B.
B
She would save $5,650 by choosing option A.
C
She would save $11,200 by choosing option B.
D
She would save $11,300 by choosing option A.
4

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.

A
She should start or add to a college savings account so it can grow with deposits and earned interest.
B
She should start or add to a college savings account so it can grow with deposits and earned interest.
C
She should ask her parents if they have a college savings account set up for her.
D
She should ask her parents if they have a college savings account set up for her.
E
She should work to maintain high grades throughout school so she can qualify for scholarships.
F
She should work to maintain high grades throughout school so she can qualify for scholarships.
G
She should get involved in extracurricular activities like clubs and sports so she can discover what she enjoys and qualify for scholarships.
H
She should get involved in extracurricular activities like clubs and sports so she can discover what she enjoys and qualify for scholarships.
I
She should fill out the FAFSA immediately so she does not miss grants or scholarships she qualifies for.
J
She should fill out the FAFSA immediately so she does not miss grants or scholarships she qualifies for.
K
She should wait until her senior year of high school to start thinking about how to pay for college.
L
She should wait until her senior year of high school to start thinking about how to pay for college.
5

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

A
college savings
B
college savings
C
student loans
D
student loans
E
grants
F
grants
G
scholarships
H
scholarships
I
work-study
J
work-study
6

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?

A
He needs to know how much of his college expenses will be covered so he knows how much to save.
B
By filling out the FAFSA and sending it in, he will not have to pay anything because grants and scholarships will cover the costs.
C
It is never too early to start saving for college. Even if he earns scholarships, he could use the money for other expenses.
D
It is too late to save for college. His parents should have started a college savings account when he entered kindergarten.
7

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.
8

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

A
FAFSA
B
1080EZ
C
voter registration form
D
HIPAA notice
9

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.
10

Javier is considering two options for college. Option A: Complete the first two years of schooling at a community collegeand then transfer to a university.Option B: Complete all four years of schooling at the university.Community College Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$3,000$1,000Room & Board $1,000 University Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$10,000$15,000Room & BoardWork-Study$11,500$4,000Which statement about the cost of the options is true?

A
Option B will save him $1,000.
B
Option B will save him $2,000.
C
Option A will save him $14,000.
D
Option A will save him $17,500.
16

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
$3,000
C
$7,000
D
$7,000
E
$7,500
F
$7,500
G
$11,500
H
$11,500

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