Terminology Review 1-Paying for College

What is "Capitalized Interest" in the context of student loans?

• Unpaid interest that has been added to the principal balance of a loan

• A fee charged for late payments

• A type of scholarship

• A government grant

Who is a "Cosigner" on a loan?

• Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

• A person who receives the loan

• A bank employee who approves loans

• A government official who manages student loans

What does "Cost Of Attendance" refer to in college expenses?

• Total expense of going to college, including tuition, room and board, fees, books, transportation, and more

• Only the tuition fees for classes

• The cost of textbooks only

• The price of extracurricular activities

What is the meaning of "Default" in relation to student loans?

• Long-term failure to repay a loan according to the terms agreed to, which negatively impacts the borrower's credit score

• Paying off a loan early

• Applying for a new loan

• Receiving a scholarship

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.11-12.4

What does "Deferment" allow a borrower to do?

• Pause their federal student loan payments without interest accruing on subsidized loans

• Increase their loan amount

• Transfer their loan to another person

• Pay off their loan faster

What does "Delinquency" describe in the context of loans?

• The status of being behind on one or more loan payments

• Paying off a loan early

• Receiving a loan for the first time

• Applying for a loan extension

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.6.4

Who can receive "Direct Plus Loans"?

• Graduate or professional students and eligible parents of dependent undergraduate students

• Only undergraduate students

• Only parents of college students

• Only students with perfect credit scores

What is a "Direct Subsidized Loan"?

• A federal student loan for undergraduates where the government pays interest as long as the student is in school at least part-time

• A loan for graduate students only

• A private loan from a bank

• A scholarship for academic achievement

Who is responsible for paying the interest on a "Direct Unsubsidized Loan" during school?

• The student

• The federal government

• The student's parents

• The college

What is a disbursement in the context of federal student loans?

• A portion of a federal student loan that the school pays out by applying the funds to the student's school account or by paying the borrower directly.

• A type of scholarship given to students based on merit.

• A fee charged by the school for processing student loans.

• A grant given to students for extracurricular activities.