Student Loans

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In order to qualify for Federal student loans…

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You must file the FAFSA

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Which of the following statements is TRUE about the advantages of federal student loans compared to private student loans? Options: Federal student loans generally offer higher interest rates which remain fixed over the term of the loan, Federal student loans do not need to be repaid if the borrower runs into financial difficulty and goes bankrupt, Federal student loans require a credit check, Federal student loans offer more flexible repayment terms

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Federal student loans offer more flexible repayment terms

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A subsidized loan is when ____________________ pays the interest while you are in school, while an unsubsidized loan is when ___________________ pays the interest while you are in school.

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the government; the borrower

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Which federal loans are available for parents to take out for their children's education? Options: Perkins Loans, Direct PLUS Loans, Subsidized Direct Loans, Unsubsidized Direct Loans

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Direct PLUS Loans

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Which statement below represents a rule of thumb for how much a student should borrow for their college education? A student should borrow as much as a private lender will allow them to borrow.  , A student should borrow no more than 35% of their discretionary income upon graduation from college., A student should borrow no more than they expect to make as a starting salary upon graduation from college.  , A student should borrow as much as they expect to earn 10 years after they graduate from college.  

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A student should borrow no more than they expect to make as a starting salary upon graduation from college.

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Which of the following statements about PRIVATE student loans is TRUE? "You do not need a co-signer for taking out private student loans; you only need a co-signer for taking out federal loans." "Private student loans are subsidized." "All private student loan lenders offer forbearance and deferment options." "Private student loan lenders may require you to make payments toward the loan while you are still in school."

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Private student loan lenders may require you to make payments toward the loan while you are still in school.

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To decrease your total student debt, it is a good idea to do which of the following? Pay the interest on your loans while you are still in school.

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Pay the interest on your loans while you are still in school

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You take out a $3,000 UNSUBSIDIZED loan as a freshman with an interest rate of 4% per year. When you graduate four years later, approximately how much will you owe on the loan?

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$3,500

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The free application for federal student aid.

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FASFA