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PF 7.4 Student Loans

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

What are some differences between federal and private student loans?

a)

Federal student loans are funded by the government

b)

Federal student loans offer income-driven repayment plans

c)

Private student loans have have forgiveness options

d)

Private student loans are funded by private organizations

2.

Why should you explore your federal loan options before private loan options?

a)
Federal loans have stricter repayment options
b)
Federal loans offer lower interest rates and more flexible repayment options.
c)
Private loans have better interest rates
d)
Private loans offer more financial assistance
3.

Which student loan does NOT charge you interest while you're in school as an undergraduate?

a)

Direct Subsidized

b)

Direct Unsubsidized

c)

Direct PLUS

d)

Private

4.

What is the first step for getting a federal student loan?

a)
Submit a resume
b)
Complete the Free Application for Federal Student Aid (FAFSA)
c)
Call the loan officer directly
d)
Ask a friend to apply for you
5.

After graduating, leaving school, or dropping below half-time, how long of a grace period do you have to start repaying your loan if you have a federal direct subsidized loan or a federal direct unsubsidized loan? ​ (a)   ​​ ​

Choose from the below words
6 months
1 year
3 months
6.

What does a loan servicer do?

a)
A loan servicer bakes cakes
b)
A loan servicer sells cars
c)
A loan servicer manages loan accounts and assists borrowers with payments and inquiries.
d)
A loan servicer designs clothes
7.

What are some reasons someone might switch from the standard repayment plan to a graduated, extended, or income-based plan?

a)
Lower initial payments, longer repayment period, fluctuating income
b)
Limited options, less flexibility, higher interest rates
c)
No benefits, same repayment terms, fixed interest rate
d)
Higher initial payments, shorter repayment period, stable income
8.

What type of loan typically has the lowest interest rate?

a)

Payday loans

b)

Credit card loans

c)

Secured loans

d)

Unsecured personal loans

9.

What is a secured loan?

a)

A loan that is backed by a promise to repay without any collateral.

b)

A loan that is backed by collateral, such as a house or car.

c)

A loan given without any background credit check.

d)

A loan with a variable interest rate that changes over time.

10.

Which of the following is NOT a common loan repayment strategy?

a)

Debt snowball method, where you pay off debts from smallest to largest.

b)

Debt avalanche method, where you pay off debts with the highest interest rates first.

c)

Paying only the minimum payment on all debts.

d)

Investing in stocks with the hope of using the returns to pay off the loan.