Student Loans Readings

What should students NOT consider when looking at how to pay for college?

• The type of loans they are taking out

• The type of school they are attending

• The type of major they are choosing

• The type of extracurricular activities they are involved in

What does Jan Miller suggest to students that should be the number 1 consideration about their loans?

• The long-term implications of their loans

• The short-term benefits of their loans

• The interest rates of their loans

• The repayment period of their loans

What does the financial information reported on the FAFSA determine?

• The amount of scholarships a student can receive

• The expected family contribution

• The student's GPA

• The student's class rank

What does the new Student Aid Index (SAI) formula remove from the calculation?

• The student's GPA

• The number of family members in college

• The student's class rank

• The student's extracurricular activities

What is the total limit for direct subsidized loans for undergraduate students?

• $10,000

• $15,000

• $23,000

• $30,000

Why should students borrow federal student loans over other loans according to McCarthy?

• They have lower interest rates.

• They tend to have better borrower benefits and income-driven repayment plans.

• They are easier to obtain.

• They do not require repayment.

Who are federal direct unsubsidized loans available to?

• Only undergraduate students

• Only graduate students

• Both undergraduate and graduate students

• Only independent students

What determines the amount of direct unsubsidized loans that students may be eligible to receive?

• Their GPA

• Their year in school and status as either a dependent or independent student

• Their extracurricular activities

• Their major

What must parents go through to be eligible for a PLUS loan?

• A financial need assessment

• A credit check

• An interview

• A background check

What type of loans typically have the best interest rates according to McCarthy?

• Private student loans

• Federal loans

• Payday loans

• Personal loans