College Costs Quiz

Yes, the correct answer is about $26,000 at a private 4-year college, and $7,000 at a 4-year, in-state university. Students often pay for college costs using a combination of savings, scholarships and financial assistance, and loans.

Yes, the correct answer is Free Application for Federal Student Aid (FAFSA). All students who are interested in federal financial assistance for education beyond high school should complete a FAFSA application. The funding for college costs comes from Federal Student Aid, an office of the Department of Education.

Yes, the correct answer is $33,500. As with other investments, the sooner you start a college fund for your child, the more time the money has to grow.

Yes, 529 College Savings Plans and Coverdell Education Savings Accounts are two vehicles designed to help parents save for their child's college education. Federal Parent PLUS Loans allow families to borrow in order to cover the cost of college, while IRAs and 401(k)s are retirement savings plans.

Yes, the correct answer is $20,000. According to the U.S. Census Bureau, in 2008 the median income for a person with a Bachelor degree was almost $20,000 more than for someone with just a high school diploma. Investing in higher education can pay off.

Yes, repayments don't start until after a student graduates or leaves college. Stafford loans have fixed interest rates (currently 6.8% for unsubsidized Stafford loans disbursed on or after July 1, 2006). Because of annual and lifetime limits on much students can borrow through the Federal Stafford student loan program, many students also take out private loans.

Yes, in 2008 the median student loan debt was about $22,000 for a 4-year private college, and about $18,000 for a 4-year public college. These figures do not include students who graduated without any education debt, such as 38% of graduates from public universities who finish without student loan debt.

Yes, the correct answer is all of the above. Check with your child's guidance counselor whether their planned profession is eligible for debt forgiveness; possibilities include teaching, law, public service, dentistry and medicine, and volunteering.

Yes, the correct answer is get a student banking account with low or no fees. Students should research banking services designed for them.

Yes, the correct statement is that finding scholarships you qualify for takes research. Talk to your guidance counselor, contact the colleges you plan to attend, search online or ask your parents it their employers offer scholarships. There are many benefits to scholarships: you don't generally have to pay them back, and they can be awarded based on grades, athletic or artistic achievement, need or because of affiliation (with a company, union, Armed Forces, etc.). It's a myth that most scholarships go unclaimed.