Smart Money Certification Smc: College Smarts

92 Questions | Total Attempts: 42

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Smart Money Certification Smc: College Smarts

Welcome to College Smarts, the final exam in LFE's Smart Money Certification!As the cost of higher education continues to rise, it’s essential to learn how to reduce expenses and make smarter decisions in the selection process. It’s also crucial to identify — and avoid — the scams and pitfalls that cost students and parents thousands every year. Plus, over 43 million Americans are struggling to repay well over $1. 2 trillion in student loan debt. One of the biggest problems is the excess of confusing information available to borrowers, but there are also costly traps to avoid when working with some loan servicers. This exam is designed to pinpoint these and other problems students (and parents) of all ages are facing, and to help


Questions and Answers
  • 1. 
    The Net Price Calculator is used to determine the total student loan debt students will have upon graduation.
    • A. 

      True

    • B. 

      False

  • 2. 
    Private and federal student loans are considered to be in default when a borrower misses 270 days of payments.
    • A. 

      True

    • B. 

      False

  • 3. 
    The clock is ticking for first-time borrowers after July 1, 2013, on how long the government will subsidize (pay interest on) their student loans.
    • A. 

      True

    • B. 

      False

  • 4. 
    The Fair Credit Reporting Act allows debt collectors to discuss a borrower's student loan payment history and default status with an employer or family member.
    • A. 

      True

    • B. 

      False

  • 5. 
    Defaulting on a student loan could play a part in determining where you'll be able to live, work, and possibly even who you marry in the future.
    • A. 

      True

    • B. 

      False

  • 6. 
    New federal guidelines require private student loan lenders to offer the same repayment plans and terms available for federal loans.
    • A. 

      True

    • B. 

      False

  • 7. 
    Consolidating student loan debts could erase benefits like forgiveness, cancellation, or discharge of some of the debt.
    • A. 

      True

    • B. 

      False

  • 8. 
    A school's cohort default rate could affect a student's ability to graduate from that school, as well as their job prospects.
    • A. 

      True

    • B. 

      False

  • 9. 
    A student loan rehabilitation can only be used to bring student loan debt out of default status once every five years.
    • A. 

      True

    • B. 

      False

  • 10. 
    CLEP exams, tuition exchanges, professional judgment reviews, or reciprocity programs are all strategies students may be able to use to cut college costs.
    • A. 

      True

    • B. 

      False

  • 11. 
    Student loan debt could possibly qualify for forgiveness if the student was unable to graduate or did not have adequate skills to find a good job.
    • A. 

      True

    • B. 

      False

  • 12. 
    STEM is an important acronym for every college student today because it stands for Student Tuition Educational Mandates.
    • A. 

      True

    • B. 

      False

  • 13. 
    One of the key criteria used to evaluate the right school is whether it meets the Department of Education's 90/10 Rule.
    • A. 

      True

    • B. 

      False

  • 14. 
    New federal guidelines require all remaining balances on student loan debt to be forgiven 20 years after the student leaves school.
    • A. 

      True

    • B. 

      False

  • 15. 
    The government will subsidize (pay the interest on) student loans when the borrower is approved for a forbearance.
    • A. 

      True

    • B. 

      False

  • 16. 
    Some student loan servicers automatically place a loan in good standing into default if a co-signer files bankruptcy.
    • A. 

      True

    • B. 

      False

  • 17. 
    Student loan servicers are not allowed to automatically place a loan in good standing into default if a co-signer passes away.
    • A. 

      True

    • B. 

      False

  • 18. 
    If an attorney can show undue hardship using the Brunner Test, you may be able to eliminate some or all of your student loan debt through bankruptcy.
    • A. 

      True

    • B. 

      False

  • 19. 
    The College Scorecard is used to identify the average cost, graduation rate, salary 10 years after graduation, and student loan debt at specific schools.
    • A. 

      True

    • B. 

      False

  • 20. 
    To make the most of the investment in college, which of the following questions should be a high priority?
    • A. 

      Are the student's friends going there?

    • B. 

      Is the campus inviting?

    • C. 

      What's the ROI of the school?

    • D. 

      Are there cultural events in the area?

    • E. 

      What's the school's debt level?

    • F. 

      All of the above

    • G. 

      C and D

    • H. 

      C and E

  • 21. 
    Which of these questions are essential to ask when selecting a degree program?
    • A. 

      Is a degree necessary for the career field I want?

    • B. 

      Is GPA important for a specific degree?

    • C. 

      Will there be jobs in this field upon graduation?

    • D. 

      Will the job pay enough to repay the amount of debt incurred?

    • E. 

      All of the above

    • F. 

      None of the above; the degree is not as important as the school you attend

  • 22. 
    It's a good investment to pay a scholarship search firm to identify the best scholarships.
    • A. 

      True

    • B. 

      False

  • 23. 
    Which of the following are reputable places to begin the process of identifying possible scholarships or financial assistance?
    • A. 

      Fastweb.com

    • B. 

      FDIC.gov

    • C. 

      AFCEA.org

    • D. 

      SallieMae.com

    • E. 

      CFPB.gov

    • F. 

      All of the above

    • G. 

      A, C, and D

    • H. 

      B, C, and E

  • 24. 
    There are scholarships for many types of students, including which of the following?
    • A. 

      War veterans

    • B. 

      STEM majors

    • C. 

      Twins attending specific schools

    • D. 

      Tall people

    • E. 

      Golf caddies

    • F. 

      All of the above

    • G. 

      A and B

  • 25. 
    Which of the following are optional strategies to reduce the cost of college?
    • A. 

      Reciprocity programs

    • B. 

      Qualifying for in-state tuition

    • C. 

      CLEP exams

    • D. 

      Professional judgment review

    • E. 

      Free tuition programs

    • F. 

      All of the above

    • G. 

      B and C