Federal Student Loans Quiz

What is the standard repayment plan duration for federal student loans?

• 5 years

• 10 years

• 15 years

• 20 years

Which repayment plan for federal student loans increases the payment amount every two years?

• Standard

• Graduated

• Extended

• Income-driven

What percentage of your income is typically paid in an income-driven repayment plan for federal student loans?

• 5-10%

• 10-20%

• 15-25%

• 20-25%

Tags

CCSS.6.RP.A.3C

What is a major advantage of a direct consolidation loan?

• Increases the total interest paid

• Reduces the number of payments

• Combines multiple federal education loans into one

• Shortens the loan term

What can you do if you have trouble making federal student loan payments?

• Ignore the due dates

• Only pay interest

• Consolidate your loans

• Increase the loan amount

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

What happens to your loans if you do not make payments for 270 days?

• The loan is forgiven

• The loan status remains unchanged

• The loan goes into default

• The loan is transferred to another lender

What is reported to the three federal bureaus if your loan becomes more than 90 days delinquent?

• Your credit score increases

• Delinquency is reported

• You receive a tax break

• Your loan is forgiven

How can you avoid defaulting on your loan?

• Ignore the loan agreement

• Never check your loan online

• Understand your loan and loan agreement

• Stop making payments

What is the maximum interest deduction you can claim on student loans?

• $1000

• $2500

• $5000

• $750

How many tax years per student can the American Opportunity Tax Credit be used?

• 2

• 3

• 4

• 5