Financial Literacy On Campus Survey

Survey Answers

Question 1: A subsidized student loan means

a) The federal government pays the interest on this loan while you are enrolled in college.
b) You are responsible for the payment of interest for this loan while you are attending coll
c) The interest is capitalizing and increasing the amount you will have to repay.
d) All of the above.
e) I don't know.


Question 2: How do Federal student loans differ from private student loans?

a) Federal student loans have a variable interest rate.
b) Private student loans are based on credit.
c) Federal student loans have an origination fee.
d) All of the above.
e) I don't know.


Question 3: Which answer below lists financial aid awards in order of most to least desirable?

a) Subsidized Stafford Loan, Unsubsidized Stafford Loan, Parent Plus Loan, Private Student Loan, Grant
b) Grant, Parent Plus Loan, Subsidized Stafford Loan, Unsubsidized Stafford Loan, Private Student loan
c) Grant, Subsidized Stafford Loan, Unsubsidized Stafford Loan, Parent Plus Loan, Private Student loan
d) Unsubsidized Stafford Loan, Private Student Loan, Grant, Subsidized Stafford Loan, Parent Plus Loan
e) I don't know.


Question 4: Your total Federal student loan debt when you graduate is $17,125 at an interest rate of 6.8 percent. Which repayment option will save the most money over the life of the loan?

a) The standard repayment plan with a monthly payment of $197.08 for 120 months.
b) The extended repayment plan with a monthly payment of $152.02 for 180 months.
c) The graduated repayment plan with a monthly payment of $130.72 for 240 months.
d) The total repayment amount for each plan will be the same, so they are all good options.
e) I don't know.


Question 5: How does a debit card differ from a credit card?

a) There is no dispute resolution with a debit card under federal law.
b) A debit card does not usually appear on your credit report.
c) You may be responsible for the total amount of all unauthorized transactions on your debit card.
d) All of the above.
e) I don't know.


Question 6: You pay the balance on your credit card in full each month. You should select a credit card with

a) No annual fee.
b) A low interest rate.
c) A grace period less than 25 days
d) None of the above.
e) I don't know.


Question 7: If you charge a $2,100 laptop computer to your credit card, which has an interest rate of 19 percent on purchases, and you only make the minimum payments (4 percent of the balance), what will the total cost of your laptop be, and when will it be paid off? (This is assuming you don't have any other charges on your credit card.)

a) $2,573.24; 2 years and 2 months
b) $3,382.87; 10 years
c) $5,274.66; 20 years and 4 months
d) $8,678.65; 37 years
e) I don't know.


Question 8: A credit card company can increase your interest rate when

a) Your payment is late.
b) You go over your credit limit.
c) They merge with another company.
d) All of the above.
e) I don't know.


Question 9: Which of the following events affect your credit score?

a) You request a credit report from a credit bureau.
b) A credit card company sends you a pre-approved offer in the mail.
c) You apply for a credit card.
d) None of the above.
e) I don't know.


Question 10: Credit scores are used to help evaluate __________ applications.

a) Rental
b) Employment
c) Insurance
d) All of the above
e) I don't know.


Question 11: What are the two most important factors when your credit score is calculated?

a) Payment history and amounts owed.
b) Length of credit history and amounts owed.
c) Types of credit in use and payment history.
d) Credit inquiries and amounts owed.
e) I don't know.


Question 12: Negative items (excluding bankruptcy) can generally remain on a credit report for ___ years.

a) Three
b) Five
c) Seven
d) Ten
e) I don't know.


Question 13: It is the end of the month, and you have enough money to pay only one bill. Which would be the most important to pay first?

a) Doctor bill
b) Rent
c) Unsecured credit card
d) Your parents
e) I don't know.


Question 14: Which answer below lists the investment options in order of risk from lowest to highest?

a) Savings account, Money market fund, Mutual fund, Individual stock
b) Money market fund, Mutual fund, Savings account, Individual stock
c) Savings account, Individual stock, Mutual fund, Money market fund
d) Mutual fund, Savings account, Individual stock, Money market fund
e) I don't know.


Question 15: In relation to student loans, what is an origination fee?

a) It is the amount the school charges you for using loans to pay your bill.
b) It is the amount the lender deducts from the loan amount you requested.
c) It is the amount the lender charges you in addition to your loan amount.
d) None of the above.
e) I don't know.


Question 16: Which of the following is considered to be a part of budgeting?

a) Tracking spending
b) Goal setting
c) Analyzing previous spending habits
d) All of the above
e) I don't know.


Question 17: When I use my credit card for a cash advance transaction:

a) My grace period remains the same as it is for purchases.
b) The interest rate is higher than my rate on purchases.
c) Interest does not accrue on the transaction until the end of the grace period.
d) None of the above.
e) I don't know.


Question 18: A grace period of 25 days on a credit card in which the balance is paid in full each month means:

a) You have 25 days after your due date to make a payment.
b) Purchases don't accrue interest for 25 days following the purchase date.
c) Purchases made within 25 days after your statement date don't accrue interest.
d) None of the above.
e) I don't know.


Question 19: When is Iowa State University's priority deadline to file the Free Application for Federal Student Aid (FAFSA) to be considered for limited funding financial aid programs?

a) January 1
b) March 1
c) May 1
d) July 1
e) I don't know.


Question 20: Each year, Federal regulations entitle a consumer to

a) One free credit report from the Federal government.
b) One free credit report from your bank.
c) One free credit report from only one of the three major credit bureaus.
d) One free credit report from each of the three major credit bureaus.
e) I don't know.