Financing your education with student loans is a long-term future obligation and should not be done without careful consideration. Many students take on large amounts of debt without being aware of the consequences. Knowing as much as you can about your student loans will help you decide how much debt is reasonable for you. Take this quiz and see how educated you are about managing student loans.
During 2008, what percentage of students in the U.S. took out loans for school?
What is a grace period?
The time period you do not need to make loan payments.
The time period when loans do not accrue interest.
The time period over which loans are repaid.
In the U.S., when do unsubsidized Federal Student Loans start accruing interest?
when debt goes into repayment
when the loan is awarded
when the grace period ends
When do subsided Federal Student Loans start accruing interest?
when the loan is dispersed
when the loan is paid off
In the U.S., what is the National Student Loan Data System?
a list of available funds for borrowing
a system that provides information about your debt
a list of students in default on their loans.
What is the standard repayment plan?
fixed payment over 10 years
fixed payment over 12 years
fixed payment over 20 years
Is it possible to repay the loan over a longer period than 10 years?
The only payment period is 10 years.
You may pay over 12 to 30 years.
You may pay over 40 years.
If I get a big salary bonus, how much of my student loan may I pay early?
You may pay early up to 20 percent of the loan balance.
You may repay any amount of your student loan early with no penalty.
You may not pay your loan early.
How do federal loan rates compare to credit card rates?
Federal Student Loan interest rates are usually lower.
Federal Student Loan interest rates are usually the same as credit cards.
Federal Student Loan interest rates are usually higher than credit cards.
What should you do if you cannot pay your student loan?
Apply for forbearance.
Apply for deferment.
How does working as a full-time teacher help repay student loans?
Teachers earn large salaries.
Teachers may qualify for loan forgiveness.
Teachers may qualify for grants.
If I go into bankruptcy, what happens to my student loan?
It remains due.
It will be decreased.
It will be cancelled.
How can I consolidate my education loans?
Contact the U.S. Department of Education.
Contact your lender.
If I consolidate my loans, what will be the interest rate?
your lowest interest rate
your highest interest rate
the average interest rate
Can I deduct my student loan payments from my income tax?
You may deduct the total yearly payment.
You may deduct the interest portion only.
You may deduct the principal portion only.
How does defaulting on a student loan affect my credit rating?
It will cause no change in your credit rating.
It will significantly lower your credit rating for a short time.
It will significantly lower your credit rating for many years.
What is forbearance?
Payments temporarily stop.
Payments temporarily decrease.
How do you qualify for a loan deferment?
a student in school
unemployed or experiencing an economic hardship
What can you do to decrease the amount of student debt you will need for school?
Apply for academic scholarships.
Apply for sports scholarships.
Are there loan forgiveness programs for graduate school debt?