Student Loans 2

How does financial need impact the availability of subsidized Stafford loans?

• Financial need is irrelevant for subsidized loans.
• Only students with high financial need can access subsidized loans.
• Financial need affects the interest rate of subsidized loans.
• Students with demonstrated financial need are prioritized for subsidized loans.

What is a key difference between subsidized and unsubsidized Stafford loans?

• Subsidized loans require repayment while in school, while unsubsidized do not.
• The government pays the interest on subsidized loans while the borrower is in school, but not on unsubsidized loans.
• Unsubsidized loans are only available to graduate students, while subsidized loans are for undergraduates.
• Subsidized loans have a higher interest rate than unsubsidized loans.

Which of the following is NOT one of the three types of federal college loans?

• Federal Stafford Loans
• Federal PLUS Loan
• Federal Perkins Loan
• Federal Grant Loan

What is the primary purpose of the FAFSA form?

• To apply for scholarships
• To determine eligibility for federal loans
• To calculate tuition fees
• To enroll in college courses

What role does the U.S. Department of Education play in the federal loan process?

• It manages the repayment process for all federal loans.
• It determines eligibility for federal loans based on FAFSA submissions.
• It sets the interest rates for all federal loans.
• It provides loans directly to students.

What does the FAFSA form help determine regarding a student's financial situation?

• The eligibility for private scholarships
• The interest rates on federal loans
• The expected family contribution (EFC)
• The total amount of student loans available

Which of the following statements accurately describes the Federal Perkins Loan?

• It is available to all students regardless of financial need.
• It is a need-based loan for students with limited income and assets.
• It has a variable interest rate.
• It requires a credit check for eligibility.

Which of the following is a benefit of the Federal Perkins Loan for needy students?

• Potential loan cancellation for certain professions
• Immediate access to funds without application
• No repayment required until after graduation
• Higher loan amounts than Stafford loans

Why is it important for students to maintain acceptable academic standards for loan eligibility?

• To qualify for higher loan amounts
• To avoid penalties on loan interest rates
• To ensure continued access to federal financial aid
• To receive additional scholarships

How do Federal Perkins Loans and Federal Stafford Loans differ in terms of their characteristics?

• Stafford loans require repayment immediately after graduation, while Perkins loans do not.
• Perkins loans are need-based, while Stafford loans can be either need-based or non-need-based.
• Stafford loans have a higher interest rate than Perkins loans.
• Perkins loans are only for graduate students, while Stafford loans are for undergraduates.