You have your heart set on going to a top American university, but the cost of the studies is prohibitive. Are you eligible for a student loan? Will it put you into financial obligation forever? Do the figures tally? See whether your figures really tally by taking this financial whiz-quiz.
How do the percentages of Americans who received a college education in 1940 compare with those of today?
It was about 5% in 1940 compared with over 25% today.
It was about 5% in 1940 compared with over 70% today.
It was about 50% in 1940 compared with over 85% today.
When were the Perkins and Stafford loans established?
the Perkins loan in 1948 and the Stafford loan in 1955
the Perkins loan in 1955 and the Stafford loan in 1960
the Perkins loan in 1958 and the Stafford loan in 1965
Many middle- and upper-income students do not apply for student loans. Why?
because they're too proud
because they think they won't qualify
because they don't need to
What are the general criteria for an "independent" student?
over 24, married, an armed forces veteran or have dependent children
over 26, have worked before or have a previous college degree
over 28, don't live with your parents and have previously taken a bank loan
Who would be the best person to help you with your student loan?
the student senate of your college
the dean of your college
the financial aid administrator of your college
To qualify for a student loan, you must take appropriate classes in an accredited school. Which of these classes would probably qualify?
calligraphy and quill cutting
reed basket weaving
What is the difference between Federal Family Education Loans (FFEL) and Direct Loans?
FFEL loans - through a lender; Direct Loans - through the Department of Education
FFEL loans - through the Department of Education; Direct Loans - through a lender
FFEL loans - for undergraduates only; Direct Loans - for under- and post-graduate students
Who pays your interest for subsidized loans while you are in college?
you or your parents
What is the advantage in taking a student loan from a bank or credit card company?
They offer low interest rates, bigger loans and don't require financial history.
There are usually low interest rates and no repayment obligation if you're studying at least part time.
You can repay the loan over the first 20 years at no interest. After that, it's 2% interest annually.
What does FAFSA stand for?
Free Aid for Federal Student Applications
Federal Application for Foreign Student Assistance
Free Application for Federal Student Aid
What is usually the earliest possible time to lodge a student loan application?
When are most first payments expected to be made?
one week after graduation
three months after graduation
six months after graduation
What was the interest rate for an unsubsidized Stafford Loan for the 2008-2009 academic year?
What is the very first stage of applying for a student loan?
securing a personal identification number (PIN)
downloading forms from the FAFSA site
calculating your assets and student expenses
Do you have to apply for FAFSA online?
No. You could also apply by phone.
No, postal mail is possible but it's slower.
On your Student Aid Report, there is an Expected Family Contribution (EFC) number. What does this indicate?
the number of repayments you'll make over a 20-year loan
the figure, in dollars, of your family's financial obligation to repay the loan
your eligibility in terms of the type and amount of financial assistance
Each student has a specific aid package tailor-made to suit him. What factors determine this?
your college reputation, financial situation and expected length of study
your state of residence, financial possibilities and career of choice
your grade level, financial needs for attending that college and other pertinent financial information
What is the promissory note for?
It specifies the loan details, such as interest rates and repayment terms.
It provides loan offers from various sources.
It lists different loan packages, with their individual interest rates and terms of repayment.
What are the U.S. Department of Education statistics regarding loan defaults?
Loan defaults are rare in most universities.
Approximately 25 percent of borrowers default on their loans.
A shocking 45 percent of borrowers default on their loans.
What are the legal ramifications of a student loan?
They are not legally binding but the college can withhold or withdraw your accreditation if you don't pay.
They are binding but cannot be pursued in a court of law.