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WorksheetsAVID 12 Student Loans & Debt
Total questions: 20
Worksheet time: 12mins
How often do you need to apply for a federal student loan?
Only once
Every semester
Every other year
Every year
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
Which statement is true regarding how private and federal loans use your credit score (borrowing history) when approving applications?
Both federal and private loans look carefully at your credit score
Only federal loans look at your credit score
Only Private Loans look at your credit score
Neither federal nor private loans look at your credit score.
Which type of loan has the accrued (added) interest paid for by the Department of Education while you are enrolled at least half-time in an institute of higher education?
Subsidized loan
Unsubsidized loan
Parent Plus Loan
Private Student Loan
Student loans are .....
like free money
ore often forgiven
must be paid back and almost never forgiven
only need to be paid back if you have a job
You must begin paying back a student loan ...
when you are ready to do so
only when you find a job
soon after you graduate
none of the above
A grant is based off of:
want
school
need
your job
period during which repayment of the principal and interest of your loan is temporarily delayed.
Deferment
Forbearance
Consolidate
to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue.
Deferment
Forbearance
Consolidate
What should you do if you can't afford your student loan payments?
Apply for another loan
Apply for an income driven repayment plan
Apply to another school
Apply for default
What is the difference between a parent loan and a loan that your parents or guardians cosign with you?
The responsibility of a parent loan is solely on them but a cosigned loan means you share the responsibility.
They are the same. The co-signatures are needed on both to prove you are related.
A cosigned loan means that your parents or guardians are witnesses to your signing. They only have responsibility on parent loans.
What is an origination fee on a loan?
A fee charged by loan companies to pay for shipping and handling of loan materials.
A fee that is charged by the lender to make up for the cost that they spend giving you a loan.
A fee that is based on where the loan is coming from.
A fee you pay depending on where you live.
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
How do you go into Loan Default?
By paying too much each month
By paying too little each month
By stopping payments all together
By ignoring tax collectors phone calls
