AVID 12 Student Loans & Debt

How often do you need to apply for a federal student loan?

• Only once

• Every semester

• Every other year

• Every year

This is the form you must fill out before going to college in order to get aid from the government to pay for college

• FAFSA
• FASAF
• FASFA
• AFSAF

A _________________ allows students to work on or off campus to earn money to help pay college costs.

• scholarship
• grant
• federal work study
• federal loan

Private student loans have better interest rates than government student loans

• True
• False

Suppose that Phil had decided to take out a private loan for $9,000 where loan payments start as soon as the loan amount is deposited in his student account and continue for 10 years. The interest rate is 8.1%. What is the total amount he will pay back? (use an online loan calculator)

• $14,237.00

• $13,235.78

• $13,156.39

• $13,160.40

Which statement is true regarding how private and federal loans use your credit score (borrowing history) when approving applications?

• Both federal and private loans look carefully at your credit score

• Only federal loans look at your credit score

• Only Private Loans look at your credit score

• Neither federal nor private loans look at your credit score.

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?

• Subsidized loan

• Unsubsidized loan

• Parent Plus Loan

• Private Student Loan

What does it mean when a student loan is "forgiven"?

• You get a letter of apology from the government
• You don't have to keep going to classes to get your degree
• You don't get as much money as your were previosuly promised
• You don't have to pay back the remainder of your loan debt

Student loans are .....

• like free money

• ore often forgiven

• must be paid back and almost never forgiven

• only need to be paid back if you have a job

You must begin paying back a student loan ...

• when you are ready to do so

• only when you find a job

• soon after you graduate

• none of the above