Student Loans Quiz (Student Loans Explained video Mint.com)

Abigail is considering taking out a loan to help pay for her college education. What type of loan is she most likely considering?

• A loan used to pay for post-secondary education

• A loan used to pay for high school education

• A loan used to pay for primary education

• A loan used to pay for vocational training

Maya and Nora are discussing their options for student loans. What are the two types of student loans they can consider?

• Federal and state loans

• Federal and private loans

• Private and state loans

• Private and international loans

Who funds federal loans?

• Banks and credit unions

• The government

• Private lenders

• The Federal Reserve

Avery, Michael, and Daniel are considering taking out a federal loan for their college tuition. What would be the main advantage for them?

• They would benefit from lower interest rates

• They could get higher loan amounts

• They wouldn't need a cosigner

• The application process would be faster

Luna, Isla, and Grace are considering taking out private loans to fund their college education. What could be a major disadvantage of this decision?

• They might have to deal with higher interest rates

• The loan amounts might be limited

• There is no need for a cosigner

• The application process could be faster

Daniel, Nora, and David are discussing the quickest way to apply for a student loan. What method did they conclude was the fastest?

• Visiting a bank in-person

• Sending an application by mail

• Calling the bank by phone

• Applying online

Avery, Samuel, and Ethan are planning to apply for a federal loan to fund their college education. What should they do first?

• Complete an application on their lender's site

• Fill out a free application for student aid (FAFSA)

• Provide proof of their high school diplomas

• Enroll in a certificate program

Michael, Priya, and Jackson are discussing their student loans. What is the average student loan amount per year for students like them?

• $4,000 to $8,000

• $8,000 to $16,000

• $16,000 to $24,000

• $24,000 to $32,000

What is the interest rate on a loan?

• The amount the lender charges to borrow money

• The amount the borrower earns from the loan

• The amount the government pays towards the loan

• The amount the lender earns from the loan

What determines the monthly balance of a loan?

• The loan amount

• The interest rate

• The borrower's yearly income

• The repayment period