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Student loan questions

Quiz by Kel Jackson

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9 questions
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  • Q1
    What is the difference between a subsidized and an unsubsidized loan?
    Subsidized loans have a lower interest rate
    Unsubsidized loans have a lower interest rate
    Unsubsidized loans are only for graduate students
    The government pays the interest on subsidized loans while the student is in school
    30s
  • Q2
    When should you start repaying your student loans?
    6 months after you graduate or drop below half-time enrollment
    After you get a job
    As soon as you take out the loan
    After your first year of college
    30s
  • Q3
    What happens if you don't make your student loan payments on time?
    You will receive a bonus
    Your loan will be forgiven
    Your credit score will be negatively impacted
    You will receive a warning
    30s
  • Q4
    What is a consolidation loan?
    A loan that combines federal and private loans into one loan with a single monthly payment
    A loan that allows you to skip a monthly payment
    A loan that covers the cost of consolidation
    A loan that combines multiple federal loans into one loan with a single monthly payment
    30s
  • Q5
    What is loan forgiveness?
    When you receive a refund for your student loan payments
    When some or all of your student loan debt is canceled or forgiven
    When you pay off your student loans in full
    When you are no longer responsible for making payments on your student loan
    30s
  • Q6
    What is the interest rate on federal student loans?
    2% for undergraduate loans, 5% for graduate loans
    10% for all types of loans
    5% for all types of loans
    Fixed and varies depending on the type of loan
    30s
  • Q7
    What is the maximum amount a student can borrow in federal student loans per academic year?
    $20,000
    Depends on the student's year in school and dependent status
    $10,000
    $30,000
    30s
  • Q8
    Can parents take out student loans for their children's education?
    Yes, with a private student loan
    No, parents are not allowed to take out loans for their children's education
    Yes, with a federal Stafford loan
    Yes, with a federal Parent PLUS loan
    30s
  • Q9
    What is the Public Service Loan Forgiveness (PSLF) program?
    A program that consolidates your private student loans
    A program that allows you to earn extra money while making student loan payments
    A program that forgives the remaining balance on your federal Direct Loans after you have made 120 qualifying payments while working full-time for a qualifying employer
    A program that gives you a lower interest rate on your federal loans
    30s

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