Understanding Student Loans and Costs

The video explores the history and current state of student loan debt in the US. It covers the rising costs of higher education, government initiatives like the GI Bill and National Defense Education Act, and the impact of these on student loans. The video also discusses the types of loans available, government responses to defaults, and the current debt situation. It concludes with the Occupy Student Debt Campaign advocating for education reform.

What is the average tuition cost for a private four-year college in the 2018-19 school year?

• $60,000

• $50,000

• $40,000

• $30,000

Which act was the first large-scale federal student loan program in the US?

• Student Loan Marketing Association Act

• Servicemen’s Readjustment Act

• Higher Education Act

• National Defense Education Act

What was one reason for the rising costs of higher education?

• Decrease in student enrollment

• Colleges making extravagant changes to attract top students

• Reduction in government funding

• Increase in faculty salaries

What was one effect of the availability of student loans on college pricing?

• Colleges raised prices without affecting enrollments

• Colleges stopped offering scholarships

• Colleges lowered tuition fees

• Colleges increased admission standards

What was the purpose of creating Pell Grants?

• To provide loans to all students

• To offer grants to low-income students

• To reduce the interest rates on student loans

• To eliminate student loan debt

What is the role of Sallie Mae in the student loan system?

• To eliminate student loan debt

• To manage and sell student loans to investors

• To provide direct loans to students

• To offer grants to low-income students

What is a characteristic of subsidized loans?

• Available only to students with excellent credit scores

• Interest is paid by the student while in school

• Repayment begins immediately after the loan is taken

• Interest is paid by the government while the student is in school

What is the main difference between subsidized and unsubsidized loans?

• Unsubsidized loans have no interest

• Subsidized loans have interest paid by the government while in school

• Unsubsidized loans are only for graduate students

• Subsidized loans require a credit check

What is one of the principles of the Occupy Student Debt Campaign?

• Increase interest rates on student loans

• Free public education through federal coverage of tuition fees

• Privatize all student loans

• Reduce the number of student loans available

What percentage of student loans were 90 days or more delinquent as of February 2019?

• 5.08%

• 7.08%

• 9.08%

• 11.08%