The Ultimate Applying for a Student Loan Quiz
by Staff
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
  • English literature
  • 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?

  • the government
  • the 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?

  • September
  • January
  • April

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?

  • 3.8 percent
  • 6.8 percent
  • 8.8 percent

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.
  • Yes.
  • 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.
  • They are legally binding.