Understanding Student Loans

What is a key difference between federal and private student loans?

• Private loans are only available to undergraduate students.

• Federal loans typically offer more flexible repayment terms.

• Private loans are always interest-free.

• Federal loans have variable interest rates.

Which type of federal student loan is available to undergraduate students with financial need?

• Private Loans

• Direct Unsubsidized Loans

• Direct PLUS Loans

• Direct Subsidized Loans

What is a characteristic of Direct PLUS Loans?

• They are available to parents of dependent undergraduate students.

• They have lower interest rates than other federal loans.

• They do not accrue interest while in school.

• They are only for undergraduate students.

What is the standard repayment period for federal student loans?

• 5 years

• 15 years

• 10 years

• 20 years

What is one alternative to taking student loans that the video suggests?

• Starting a business

• Taking a gap year

• Applying for scholarships and grants

• Investing in stocks