Test Your Student Loan Knowledge

Question 1 /16

1. The total of outstanding student loans in the U.S. is now greater than:*

Question 2 /16

2. Place the following categories of consumer debt in the U.S. in order, from LEAST to GREATEST:*

Question 3 /16

3. What is the standard repayment scenario for repaying federal direct student loans?*

Question 4 /16

4. Monthly payments on student loans should remain below what percent of your income to be considered “manageable”?*

Question 5 /16

5. What is the difference between a subsidized and an unsubsidized Federal student loan?*

The government pays the interest on the subsidized loan while you are in school and through the grace period, but the unsubsidized loan accrues interest.
The government pays the interest on the unsubsidized loan while you are in school, but the subsidized loan accrues interest
With a subsidized loan, the government pays your first 6 months of payments when you graduate
A subsidized loan can be eliminated in bankruptcy; an unsubsidized loan cannot

Question 6 /16

6. What does FAFSA stand for?*

Question 7 /16

7. In the financial aid process, what does EFC stand for?*

Question 8 /16

8. Who determines the interest rates on federal student loans?*

Question 9 /16

9. Federal Student Loan Forgiveness amounts*

Question 10 /16

10. What are “Parent Plus” loans?*

A federal loan program through which parents can borrow up to a dependent student's cost of attendance minus other financial aid received
A federal loan program through which parents with good credit can borrow for a dependent’s education if the student doesn’t borrow government funds
A federal loan program for parents that doubles the amount a student can borrow on their own
A federal loan program through which any parent of a college student can borrow up to the EFC for their education

Question 11 /16

11. The interest rate on “Parent Plus” loans is*

Question 12 /16

12. If you declare personal bankruptcy, your student loans*

Are always discharged if you completed your education
Are never discharged
Are only discharged only if you can pass the three-part hardship test of the bankruptcy court
Are only discharged only if you didn’t complete school

Question 13 /16