Federal Student Loans Explained Get2College

What is the most important fact to know about student loans?

• They do not need to be repaid.

• They have to be repaid.

• They are only available for graduate students.

• They are interest-free.

How do federal loan interest rates compare to private loan interest rates?

• Federal loan interest rates are often higher.

• Federal loan interest rates are often lower.

• Federal loan interest rates are the same as private loan rates.

• Federal loan interest rates vary each year.

What is a characteristic of federal loan interest rates?

• They increase every year.

• They decrease every year.

• They stay the same throughout the duration of the loan.

• They are determined by the borrower's credit score.

Which type of loan is for students who demonstrate financial need?

• Direct unsubsidized loan

• Direct subsidized loan

• Private loan

• Parent PLUS loan

What happens to the interest on a direct subsidized loan while you are in school?

• It accrues and must be paid monthly.

• It does not accrue.

• It is added to the principal amount.

• It is paid by the school.

What happens to the interest on a direct unsubsidized loan while you are in school?

• It does not accrue.

• It is paid by the government.

• It accrues.

• It is waived.

Do student loans require a credit check or a cosigner?

• Yes, always.

• No, they do not require a credit check or a cosigner.

• Only for private loans.

• Only for loans over $10,000.

Which type of loan might have increasing interest rates each year?

• Federal loans

• Direct subsidized loans

• Direct unsubsidized loans

• Private loans

What is one advantage of sticking with federal loans?

• They require a cosigner.

• They have variable interest rates.

• They often have lower interest rates than private loans.

• They are only available to graduate students.

Which of the following is NOT true about direct subsidized loans?

• They are for students with financial need.

• They accrue interest while you are in school.

• They do not require a credit check.

• They have a fixed interest rate.