Student Loan Repayment Quiz

What is recommended regarding student loan repayment?

• Everyone should consolidate their federal loans.

• Pay above the minimum payment on student loans starting with the highest interest rate.

• Make the minimum payments only as programs may be available in the future to erase your student loan debt.

• Declare bankruptcy.

Who covers the interest on a subsidized loan until you leave school?

• Your parents while you are in school

• You cover the interest as it accrues while your in school

• The government

• No one covers the interest; it accumulates

Do grants and scholarships need to be repaid?

• True

• False

Is great credit necessary to qualify for student loans?

• True

• False

Can a scholarship be based on either need or merit?

• True

• False

Can both the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) be taken in the same year?

• True

• False

What is the best option for investing for your future child's college education?

• An in-state 529 education plan

• An Education Savings Account (ESA)

• A kid's savings account

• Government Bonds

What are most work study programs, grants, and federal loans based on?

• Merit

• Financial need

• Program of study

• State of residence

What is the default repayment option when you start paying back your federal loans after graduation?

• Fixed payments over 10 years

• Graduated payments over 10 years

• Fixed payments over 25 years

• Income-based repayment plan

When determining your estimated family contribution (EFC), do a student's assets count more than the parent's assets?

• True

• False