I was self-pay and was still required to complete the psych evaluation. I met 1:1 with a therapist and she essentially made sure I didn't have any underlying psychological issues that would impede my success or possibly cause me to hurt myself. She also seemed very interested in the type of support structure I had (family, friends, work). It should never feel like a "test" - it should be an evaluation with a recommendation.
You won't be doing yourself any favors by telling them what you think they want to hear. Any good mental health professional will detect this right away. Remember, you are doing this for yourself, and the only person you might hurt is yourself - so honesty and accountability will take you very far in this journey!