Financial Literacy

Pell grant eligibility must be renewed every academic year.

• True

• False

You do not need to pay back your student loans if you go bankrupt.

• True

• False

Federal PLUS loans are available to graduate students or to parents of undergraduate students

• True

• False

In terms of federal student aid, full-time students are those who take at least 12 credit hours per semester.

• True

• False

If you are eligible for a Pell Grant, the amount of money you will receive depends on WHICH of the following? Select all that apply.

• Your "student aid index"

• The cost of attendance for your university

• Your part- or full-time status

• Your plans to attend school for a full academic year or less

If you received federal (direct) loans, when will you first have to start paying them back? (Let’s assume that you are not enrolled in another college or graduate school after you graduate.)  

• While you are in college

• The first month after you leave college

• Six months after you leave college

• One year after you leave college

Which is NOT CORRECT about federal (direct) subsidized and unsubsidized loans? 

• You can determine the amount of money you borrow from these loans.  

• Subsidized loans are only available to undergraduate students with financial needs.  

• The federal government pays interests on subsidized loans while students are in school at least half-time.  

• Interest rates on subsidized and unsubsidized loans are the same.  

What is the current interest rate on federal (direct) subsidized loans?

• 1.37%

• 2.48%

• 4.99%

• 6.53%

Suppose that you have to take out a loan to pay your tuition and you cannot pay it back for the next 6 months. If you have a low credit score (which is typical for a young undergraduate student), which one of the following loan options charges the HIGHEST interest rate? 

• Federal Subsidized loan

• Federal Unsubsidized loan

• Federal PLUS loan

• Credit card revolving loan

• Private student loan (from banks/other financial institution)

There are a few instances where students can defer their federal loan payment. Which of the following statements is NOT CORRECT about federal loan deferment?  

• You do not need to pay back your student loans during the deferment period

• Even if you want to, you cannot pay back your student loans during the deferment period.  

• You can defer federal loans while you are enrolled at least half-time in graduate school.  

• You can defer federal loans while you are unemployed.