Understanding Federal Student Loans

What is a key reason to consider a federal student loan?

• To receive educational counseling

• To pay back after graduation without interest

• To avoid working while studying

• To cover the full cost of attending school

Why is it important to only accept the loans you need?

• To qualify for more scholarships

• To reduce the amount you have to repay after school

• To minimize your educational expenses

• To increase your credit score

What should you research before deciding how much to borrow?

• The highest paying jobs

• The easiest courses

• The location and financial fit of your school

• The best student loan providers

How can the location of your school impact your borrowing needs?

• Out-of-state schools offer more scholarships

• Online schools require larger loans

• In-state schools may cost less

• International schools have lower interest rates

Why is it important to consider your future income when deciding how much to borrow?

• To ensure you can travel after graduation

• To make sure your loan payments are a small percentage of your salary

• To guarantee a high-paying job

• To avoid needing a job while in school

What is a promissory note?

• A scholarship application

• A graduation certificate

• An agreement to repay your loan

• A financial aid grant

Why is it important to keep a copy of your promissory note?

• To use as a reference for future loans

• All of the above

• To remember your loan servicer's contact information

• For your academic records

How can you maintain contact with your loan servicer?

• You don't need to maintain contact

• Sending letters by post

• Through web, email, and phone

• By visiting their office

Where can you find more information about federal student loans?

• studentaid.gov

• Your local bank

• Educational forums

• Social media