Students' knowledge of the financial aid process is "shockingly low."

That's the takeaway from a new study by ACT, which in April 2018 surveyed about 1,200 high school students who were registered to take the standardized test.

Regardless of economic background, most families pointed to price as a very important consideration in choosing a college. Yet most students don't understand the basic workings of financial aid, which includes grants, scholarships, work study and loans.

More than 70% of students didn't know that loans from the government for undergraduate students are subsidized, meaning interest doesn't accrue on them while the student is enrolled in college.

Most students also didn't know that student loans can be repaid on an "income-driven" plan, in which their monthly payments are capped at a percentage of their income.

Another recent study by the National Center for Education Statistics found that just 11% of ninth graders can correctly estimate the tuition and fees for one year at a public four-year college in their state. Around 57% overestimated the costs, and 32% underestimated them.

"The findings highlight an urgent need for more financial literacy-specific interventions, especially in light of the economic stakes at hand," said Jim Larimore, chief officer for ACT's Center for Equity in Learning.