The Ultimate Managing Student Loans Quiz

By: Staff

4 Min Quiz

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About This Quiz

Financing your education with student loans is a long-term future obligation and should not be done without careful consideration. Many students take on large amounts of debt without being aware of the consequences. Knowing as much as you can about your student loans will help you decide how much debt is reasonable for you. Take this quiz and see how educated you are about managing student loans.

During 2008, what percentage of students in the U.S. took out loans for school?

A total of 66 percent of students in the U.S. borrowed money for college.


What is a grace period?

Loans are in grace for the time you are a student plus a specified time after graduation. During a grace period, you do not need to make loan payments.


In the U.S., when do unsubsidized Federal Student Loans start accruing interest?

Unsubsidized Federal Student Loans start accruing interest the moment you take out the loan.


When do subsided Federal Student Loans start accruing interest?

Subsidized loans start accruing interest after graduation.


In the U.S., what is the National Student Loan Data System?

The system provides information on your student debt principal and interest amounts.


What is the standard repayment plan?

The standard repayment plan is a fixed monthly amount over a 10-year period. It is very important to make all your payments by the due date.


Is it possible to repay the loan over a longer period than 10 years?

You may select an extended payment plan for between 12 to 30 years. Be aware that additional interest charges from selecting an extended plan will increase the total amount you must repay when compared to the 10-year repayment.


If I get a big salary bonus, how much of my student loan may I pay early?

Usually there is no prepayment penalty, so pay as much as you like as early as you can. Congratulations on doing so well at your job!


How do federal loan rates compare to credit card rates?

Federal Student Loan rates may accrue a lower interest rate than your credit cards. Do not be tempted to pay your higher interest credit card debts instead of your student loans.


What should you do if you cannot pay your student loan?

If you are having a tough time, find out if you will qualify for a forbearance or deferment. Contact your lender as soon as possible.


How does working as a full-time teacher help repay student loans?

Full-time elementary and secondary school teachers may be eligible for loan forgiveness. There are some stipulations, so you will need to inquire with your school's financial aid office or lender.


If I go into bankruptcy, what happens to my student loan?

Student loans are not usually discharged by bankruptcy.


How can I consolidate my education loans?

Consolidating your loans will put all the loans together in one repayment package, making it easier to keep track of different loans from different lenders. The U.S. Department of Education and your lender will help you with consolidation services.


If I consolidate my loans, what will be the interest rate?

Consolidating uses the average interest rate of all the loans.


Can I deduct my student loan payments from my income tax?

That would be wonderful, but only the interest portion of the payment is deductible.


How does defaulting on a student loan affect my credit rating?

Defaulting will lower your credit rating significantly for many years.


What is forbearance?

Forbearance is a temporary stop of payments or a decrease in the payment amount. To qualify, your debt must be greater than 20 percent of your gross income.


How do you qualify for a loan deferment?

Loans may be deferred while you are in school, if you are unemployed or having an economic hardship. Contact your lender for more information.


What can you do to decrease the amount of student debt you will need for school?

One way to decrease the amount of needed debt is to be awarded college scholarships. Schools offer many academic and sports scholarships to entice top students to attend.


Are there loan forgiveness programs for graduate school debt?

If you are a doctor or lawyer, you may qualify if you work in specific lower-paying positions. Ask your school's financial aid officer.


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