Types of Loans Quiz

Which type of loan is based on financial need?

• Subsidized loans

• Unsubsidized loans

• Private loans

• Online lender loans

The type of loans that are based on financial need are _____.

• subsidized loans

• unsubsidized loans

• private loans

• payday loans

Subsidized loans are different than other types of loans because they _____.

• are awarded by financial institutions

• are based on financial need

• are awarded by institutes of higher education

• have zero interest

Which type of loan has the accrued (added) interest paid for by the Department of Education while you are enrolled at least half-time in an institute of higher education?

• Private loan

• Online lender loan

• Subsidized loan

• Unsubsidized loan

Which type of loan has a higher borrowing limit, a subsidized or unsubsidized loan?

• Unsubsidized loan

• Subsidized loan

• They are the same

• It depends how much financial need you have

If a person qualifies, why is it better to accept a subsidized loan before an unsubsidized loan?

• Subsidized loans are in your parent's name which means you do not have to pay them back.

• Since subsidized loans have higher borrowing limits, you can pay for more classes.

• The accrued (or added) interest on a subsidized loan is paid by the Department of Education while you are enrolled at least half time.

• Subsidized loans have zero interest.

Federal loans are from _____.

• the government

• private banks

• credit unions

• investment firms

What do you need to complete in order to qualify for a federal student loan?

• Standardized test (SAT or ACT)

• Loan application

• Credit report

• The FAFSA

Which statement best describes how federal student loans are different than private student loans?

• Federal loans look at your credit history carefully and have variable interest rates.

• Federal loans always have a fixed interest rate and you qualify regardless of your credit score.

• Federal loans require a cosigner and some type of collateral.

• Federal loans are administered by the institute of higher education, which is why their rates are better.

Private student loans are from _____.

• financial institutions like banks and credit unions

• government agencies

• non-profit organizations

• educational institutions