Understanding College Savings Answers

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Bethany is in 7th grade. She wants to attend college and knows that she will need funds. Which option of funding her education should she consider now?

A
She could quit sports and after-school clubs to earn money.
B
She could ask her neighbors to help her pay for college.
C
She could apply for a loan at her parents’ bank.
D
She could talk with a school counselor to see what activities, clubs, and classes could help her earn a scholarship.
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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
3

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.
4

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.
5

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.
6

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.
7

Which term is defined as a loan given to students to help pay for education-related expenses?

A
financial aid
B
scholarship
C
student loan
D
work-study
8

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
$11,000
C
$15,500
D
$17,000
9

Sophie is attending college next year. She just got information on the college costs and the financial aid package the college is offering. Sophie knows her parents can contribute $3,500 each year.Sophie’s College Costs & Financial Aid Package per YearCostsFinancial Aid PackageTuition & FeesGrants & Scholarship$11,750$9,000Room & BoardWork-Study$11,500$7,000How much will Sophie need to pay each year from her own savings and from loans?

A
$2,750
B
$3,750
C
$7,250
D
$10,750

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