Finance Quiz
- What is a student loan?
- Which entity typically issues student loans in the United States?
- What is the difference between a subsidized and an unsubsidized student loan?
- What is the maximum amount of federal student loan debt a student can borrow?
- Can student loans be used to pay for living expenses while in college?
- What is the Free Application for Federal Student Aid (FAFSA)?
- What is the difference between a fixed and variable interest rate on a student loan?
- What is loan deferment?
- What is loan consolidation?
- What is the difference between a private and federal student loan?
- How does a student qualify for a federal student loan?
- What is a cosigner on a student loan?
- How does a student loan impact a person's credit score?
- Can a student loan be discharged in bankruptcy?
- What is loan forbearance?
A loan taken by a student to pay for their education.
A scholarship provided to students to pay for their education.
A loan taken by parents to pay for their child's education.
Private banks and financial institutions
The federal government
Both
Subsidized loans have lower interest rates than unsubsidized loans.
Subsidized loans are only available to graduate students.
The government pays the interest on subsidized loans while the student is in school, but not on unsubsidized loans.
There is no maximum amount.
$50,000
$100,000
Yes
No
Only if the student is living on campus.
An application to apply for federal student grants
An application to apply for both federal student loans and grants
An application to apply for federal student loans
Variable interest rates stay the same over the life of the loan, while fixed rates can change.
Fixed interest rates stay the same over the life of the loan, while variable rates can change.
There is no difference between fixed and variable interest rates.
When the student loan payments are temporarily paused.
When the student loan is forgiven and does not have to be paid back.
When the student loan payments are reduced.
When a student loan is reduced or forgiven.
When the interest rate on a student loan is lowered.
When multiple student loans are combined into one loan with one payment.
Private loans have higher interest rates than federal loans.
Private loans are only available to students with good credit.
Federal loans have more flexible repayment options and forgiveness programs.
They must be a U.S. citizen or eligible non-citizen.
They must be enrolled in an accredited college or university.
Both
Someone who is responsible for paying the loan if the student cannot.
Someone who takes out the loan with the student.
Someone who helps the student fill out the loan application.
It can either positively or negatively impact their credit score, depending on whether or not they make payments on time.
It has no impact on their credit score.
It always negatively impacts their credit score.
Yes, but only in certain circumstances.
No, student loans cannot be discharged in bankruptcy.
Yes, student loans can always be discharged in bankruptcy.
When the student loan is forgiven and does not have to be paid back.
When the student loan payments are temporarily paused or reduced.
When the interest rate on a student loan is lowered.