WorksheetsUnderstanding Student Loans and Costs
Total questions: 30
Worksheet time: 2hrs 30mins
Who do federal loans come from?
These loans are government-issued.
These loans can come from banks, credit unions, and schools and other private institutions.
These loans come from public-private partnerships.
All of the above.
Where do private student loans come from?
These loans come from public-private partnerships.
These loans can come from banks, credit unions, schools and other private institutions.
These loans are government-funded.
All of the above.
Which of these statements about federal student loans is false?
The interest rate for federal student loans is set by government.
Federal student loans have a fixed rate that is often lower than private loan rates.
Certain federal loans are government-subsidized.
There are a range of federal student loans and they all have their own eligibility requirements.
None of the above.
What is one way to reduce college tuition costs?
Take core credits at a community college before transferring.
Only apply to expensive universities.
Avoid applying for scholarships.
Borrow as much money as possible upfront.
What is meant by “free money” in the context of college financing?
Money that students find randomly.
Scholarships, grants, and awards that do not need to be repaid.
Extra student loans that don’t require interest payments.
Money that colleges give all students for attending.
Why is it important to apply for scholarships and grants?
They guarantee acceptance into any college.
They increase the amount of student loans a person can take out.
They are only available to athletes and top students.
They help reduce tuition costs without the need for repayment.
What is one advantage of working a part-time job or participating in a work-study program?
It makes student loans unnecessary for all students.
It guarantees a full scholarship.
It allows students to pay for tuition as they go.
It automatically reduces tuition costs.
Why should students limit the amount they borrow in student loans?
Borrowing more money increases tuition costs.
Taking out large loans can lead to significant debt after graduation.
The government will not allow students to borrow more than a fixed amount.
Large loans automatically lead to better job opportunities.
What is the main difference between federal and private student loans?
Federal student loans have higher interest rates than private loans.
Federal student loans are funded by the government, while private loans come from banks and other institutions.
Private student loans offer better repayment options than federal loans.
Private student loans are always subsidized by the government.
What is a key benefit of subsidized federal student loans?
They have no interest at all.
They are only available to students with perfect credit scores.
The government pays the interest while the student is in school and for a grace period after graduation.
They offer unlimited borrowing amounts.
What is FAFSA used for?
It helps students find private loans.
It allows students to consolidate their loans.
It provides scholarships that cover all college costs.
It determines eligibility for financial aid, including federal student loans.
How do repayment options differ between federal and private student loans?
Private loans have more repayment plans than federal loans.
Private loans always have lower monthly payments.
Federal loans have flexible repayment options, while private loans tend to be more rigid.
Both types of loans offer income-based repayment plans.
Why is it important to borrow only what you need in student loans?
Borrowing more can reduce your interest rate.
Borrowing more allows you to extend your repayment period indefinitely.
Borrowing too much can lead to high repayment costs, similar to eating too many spicy buffalo wings.
Student loans are automatically forgiven if you borrow beyond a certain amount.
Private loans have more flexible repayment options than government-funded loans.
To pay for school, use ‘free money’, ‘borrowed money’ and ‘your money’ in that order.
Your employer, your parent’s employer, professional associations and local service clubs may all offer education funding
Scholarships are only for sports stars and exceptional students.
When dealing with student loans, you should aim to borrow as little as possible.
Involving your parents and family in the student loan process is always a bad idea.
Looked at many scholarships, grants and awards; applied for as many as possible
"SAVE" more
"SPEND" more
Had lots of tuition to pay for school, got a part-time job to help keep the cost from adding up
"SAVE" more
"SPEND" more
Had lots of extra expenses for school, decided to study now and deal with the debt later, as a working professional
"SAVE" more
"SPEND" more
Got a student loan offer and borrowed as little as possible to prevent debt from piling up
"SAVE" more
"SPEND" more
Consolidated multiple student loans into a single loan with a higher interest rate
"SAVE" more
"SPEND" more
Found out employer offers funding for employee education, didn’t bring it up to avoid annoying the boss
"SAVE" more
"SPEND" more
What kind of funding does a "work-study program" provide?
Free money that doesn’t need to be repaid.
Money earned through part-time work while studying.
Loans that must be repaid with interest.
Tuition discounts given by the university.
What kind of funding does a "grants" provide?
Free money that doesn’t need to be repaid.
Money earned through part-time work while studying.
Loans that must be repaid with interest.
Tuition discounts given by the university.
What kind of funding does a "federal student loans" provide?
Free money that doesn’t need to be repaid.
Money earned through part-time work while studying.
Loans that must be repaid with interest.
Tuition discounts given by the university.
What kind of funding does a "on-campus gigs" provide?
Free money that doesn’t need to be repaid.
Money earned through part-time work while studying.
Loans that must be repaid with interest.
Tuition discounts given by the university.
What kind of funding does a "service clubs" provide?
Free money that doesn’t need to be repaid.
Money earned through part-time work while studying.
Loans that must be repaid with interest.
Tuition discounts given by the university.
