The Ultimate Applying for a Student Loan Quiz

By: Staff

How do the percentages of Americans who received a college education in 1940 compare with those of today?

In 1940, the percentages of college-going Americans stood at 5%; today, that figure stands at over 70%.

When were the Perkins and Stafford loans established?

The Perkins loan was established following the National Defense Education Act in 1958, whereas the Stafford loan was established following the Higher Education Act in 1965.

Many middle- and upper-income students do not apply for student loans. Why?

Students from the upper end of the social spectrum often don't apply, because they think (mistakenly) that they won't qualify.

What are the general criteria for an "independent" student?

To be considered "independent," you need to be over 24, married, an armed forces veteran or to have dependent children.

Who would be the best person to help you with your student loan?

The financial aid administrator of your college would be the best man for the job.

To qualify for a student loan, you must take appropriate classes in an accredited school. Which of these classes would probably qualify?

Some classes might disqualify you for a loan, such as classes not catered towards your degree. Chances are, English literature would indeed be appropriate.

What is the difference between Federal Family Education Loans (FFEL) and Direct Loans?

FFEL loans are processed via a lender while Direct Loans are via the Department of Education.

Who pays your interest for subsidized loans while you are in college?

The government foots the bill for subsidized loans while you are in college.

What is the advantage in taking a student loan from a bank or credit card company?

Taking a student loan from a bank or credit card company usually means you'll have low interest rates and no repayment obligation while you're still studying.

What does FAFSA stand for?

FAFSA stands for Free Application for Federal Student Aid.

What is usually the earliest possible time to lodge a student loan application?

The earliest possible time is usually January. Most colleges will accept applications from then until June 30.

When are most first payments expected to be made?

The majority of loans require first payments to be made six months after graduation, whether or not the student has found work.

What was the interest rate for an unsubsidized Stafford Loan for the 2008-2009 academic year?

For that academic year, the unsubsidized Stafford Loan had a 6.8 percent interest rate.

What is the very first stage of applying for a student loan?

To jump-start the whole process, you first need a personal identification number (PIN).

Do you have to apply for FAFSA online?

You can either apply online (the quicker route) or by snail mail.

On your Student Aid Report, there is an Expected Family Contribution (EFC) number. What does this indicate?

The EFC number refers to 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 tailor-made aid package is usually determined by your grade level, cost of college studies and other pertinent financial details.

What is the promissory note for?

The promissory note is basically your green light to the loan. It is your signed document specifying your loan details and repayment terms.

What are the U.S. Department of Education statistics regarding loan defaults?

The statistics aren't as bad as they might have been, but they're not great either. It seems that around 25 percent of student loan borrowers default on their loans.

What are the legal ramifications of a student loan?

Legally speaking, a student loan is as legally binding as a home mortgage or car loan. Don't pay and you risk being hauled into court.

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About This Quiz

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.

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