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WorksheetsStudent Loan Practice
Total questions: 25
Worksheet time: 16mins
private companies
the state government
the federal government
investors
Scholarships and _______________ are both types of gift aid that do NOT have to be repaid
To qualify for student loans, you must...
go college in your home state.
fill out a FAFSA.
apply directly to the school of your choice for financial aid.
apply to a bank for a student loan.
Which of the following statements is TRUE?
the longer the term, the more total interest you pay
the longer the term, the quicker you will pay off your loan
the longer the term, the lower the total cost of your loan will be
the longer the term, the more damaged your credit score will be
Which of the following is correct?
On subsidized loans, you never pay any interest; you pay interest on unsubsidized loans.
On subsidized loans, the government pays the interest while you're in college, and then you pay the interest once you're no longer enrolled.
With subsidized loans, if you don't graduate and earn a diploma, you don't have to pay those loans back. All unsubsidized loans must be repaid.
Subsidized loans come from private banks, while unsubsidized loans come from the Federal government.
Which of the following options will likely be MOST expensive?
Private loan
Grant
Unsubsidized federal student loan
Subsidized federal student loan
Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%.
How much interest will Marlie accrue during the 4.5-year non-payment period?
$2536.23
$3629.34
$3236.56
$3896.32
Marlie will be starting college next month. She was approved for a 10-year, Federal Unsubsidized student
loan in the amount of $18,800 at 4.29%. She knows she has the option of beginning repayment of the loan
in 4.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%.
Marlie has to decide whether she can afford to make interest-only payments for the first
4.5 years or defer all payments for that period of time. If she decides to make no payments
during the 4.5 years, the interest will be capitalized (added to the principal) at the end of that period.
Suppose Marlie decides to defer the payments. What will be the new principal when she begins making loan payments?
$22,429.34
$18,800
$20,000
$18,823.32
Barb is a freshman attending a 4-year college. She has been approved for a $12000 subsidized federal loan at 4.29% for 10 years. How much will the U.S. Department of Education pick up in interest costs during her 4.5-year
non-payment period?
$2,316.60
$2,231.00
$2,121.00
$2,323.23
Phil has been accepted into a 2-year Radiology Technician Program at a career school. He has been awarded a $9000 unsubsidized 10-year federal loan at 4.29%. He knows he has the option of beginning repayment of the loan in 2.5 years. He also knows that during this non-payment time, interest will accrue at 4.29%. If Phil decides to make no payments during the 2.5 years, the interest will be capitalized (added to the principal) at the end of that period. What will be the new principal when he begins making loan payments?
$9,789.32
$9,965.25
$9,128.48
$9,145.39
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
What does FAFSA stand for?
Federal Application for Federal Student Aid
Financial Aid for Free Student Application
Federal Aid for Federal Student Application
Free Application for Federal Student Aid
What does "defer" mean in terms of a loan?
Temporarily not make any payments on your loan.
Different loans can be used to pay for your school.
Your loan has been approved.
The total amount of interest you pay on your loan.
Identify 2 ways to MINIMIZE paying interest on student loans.
pay the interest while you are in school
pay more than the minimum payment when payments begin
defer payments for 4.5 years
take out a loan for every year of college
Which one does NOT mean the same thing as ACCRUE?
appreciate
build up
accumulate
grow
interest
Which formula is used when calculating interest on student loans?
simple interest
compound interest
Who qualifies for subsidized loans?
lower-income families
higher-income families
any family
students who have a job
