Name:_________________________________
Date:_________________________________
Economics and Personal Finance
Higher Education Quiz
1. The _________________ of continuing your education
is the money you would have earned if you have
worked instead.
a. Debt‐to‐income ratio
b. Opportunity cost
c. Benefit
d. Total estimated cost
2. It is recommended that your educational loan
payments require no more than 10‐15% of your
estimated starting income. To calculate this amount,
students need to calculate the _________ of their
education and training.
a. Opportunity cost
b. Career pathway
c. Benefit
d. Debt‐to‐income ratio
3. Shawn plans to attend college in 2 years. He and his
family have saved some money to help pay for it, but
he wants to explore ways he can receive money he
DOES NOT need to repay. Which set of options below
should he explore?
a. Federal Perkins Loans, PLUS and local bank loans
b. Federal Student Grants, PLUS Loans, and
scholarships
c. Pell Grants, Work‐study, and scholarships
d. Work‐study, scholarships and PLUS Loans
4. James is struggling to make his student loan payments
after college. He is considering defaulting on the
student loan. Which is NOT a potential consequence if
he decides to default on the student loan?
a. He could be denied credit cards, car or home
loans, or apartment leases.
b. The bank could refuse to allow him to open a
checking account.
c. He may not be able to obtain a marriage license.
d. His wages may be garnished.
Class:_________________________________
5. Carson’s family has always struggled financially due to
his parents’ leaving high school before graduating and
working lower paying jobs to support the family. His
parents don’t want him to make the same mistake
and are encouraging him to apply for scholarships
and any type of student aid he might qualify for.
Which application will determine which typed of
need‐based aid he will qualify for?
a. Perkins Federal Loan Application
b. Direct Subsidized Stafford Loan Application
c. Federal Work Study Application
d. Free Application for Federal Student Aid (FAFSA)
6. A series of connected education and training
programs that allow you to secure a job and then to
advance within an industry or occupation is known
as:
a. Backwards planning
b. Work study
c. Opportunity Cost
d. Career Pathway
7. What is the formula to calculate the debt-to-income
ratio:
a. Net income ÷ total debt
b. Yearly debt ÷ monthly income
c. Monthly loan payment ÷ monthly wages
d. Gross income ÷ yearly loan payments
8. Which of the following is NOT a way to reduce the
cost of higher education?
a. Living at home
b. Double major
c. Take AP classes
d. Attend community college first
9. Mallory has set a career goal of becoming a 15. Which of the following federal loan programs has
veterinarian but does not have the money to complete the highest interest rates?
this goal without taking out very large student loans. a. Federal Perkins Loan
She decides to attend a 2‐year program to become a b. Direct Unsubsidized Stafford Loan
veterinary technician, and then work for 3 years in that c. Direct Subsidized Stafford Loan
field while saving money for her remaining 2 years of d. PLUS Loan
college and veterinary school. Mallory’s plan is known
as a/an: 16. The demand for a particular job when you are
a. Career pathway qualified and ready to enter the field is known as
b. Opportunity cost what?
c. Debt‐to‐income ratio a. Backwards planning
d. SMART goal b. Job outlook
c. Work study
10. Which of the following degrees is awarded the LEAST d. Career pathway
as represented at the top of formal training pyramid?
a. Associates 17. What is the formula to calculate need-based student
b. Master’s aid?
c. Doctorate a. Tuition – loans
d. Bachelor’s b. Scholarships + grants + loans
c. Cost of attendance – expected family
11. Which of the following is NOT a basis for a contribution
scholarship? d. Loans – scholarships
a. Family name
b. Academic achievement 18. If you find yourself having trouble repaying your
c. Community service student loans, which of the following is NOT a
d. Degree program possible remedy?
a. Ask to defer the start date of payments
12. To receive federal student aid, which of the following b. Default on the loans
will impact your eligibility? c. Consolidate several loans into one with a lower
a. Age interest rate
b. Race d. Renegotiate the repayment terms with the
c. Citizenship status lender
d. Field of study
19. Which of the following is NOT a characteristic of a
13. Which of the following sources of higher education work study program?
money MUST be repaid? a. Must be repaid upon graduation
a. Federal Perkins Loan b. Administered by the school
b. Grants c. Provides part-time jobs to students with financial
c. Scholarships need
d. Work study earnings d. Earnings may be used to help pay educational
expenses
14. Using the “backwards planning” concept, what should
be the first step in this process? 20. The window of time after a borrower graduates,
a. Determine the debt-to-income ratio leaves school, or drops below half-time enrollment
b. Apply to colleges where they are not required to make certain federal
c. Set career goal loan payments.
d. Determine job outlook a. Consolidate
b. Deferment
c. Grace period
d. Forbearance