FAFSA Federal Aid Types 2

Question 1

Which of the following federal loan programs requires a credit check?

Accepted Answer

Direct PLUS Loan

Answer

Direct PLUS Loans (both Parent PLUS and Graduate PLUS) require a credit check, and borrowers with adverse credit history may be denied.

Question 2

Who can borrow a Parent PLUS Loan?

Accepted Answer

The biological or adoptive parent of a dependent undergraduate student

Answer

Parent PLUS Loans can be borrowed by biological or adoptive parents of dependent undergraduate students to help pay for the student's education.

Question 3

What is the aggregate (lifetime) federal loan limit for dependent undergraduate students?

Accepted Answer

$31,000

Answer

Dependent undergraduate students can borrow a maximum of $31,000 in federal Direct Loans over their undergraduate career (no more than $23,000 of which can be subsidized).

Question 4

What interest rate feature applies to all federal student loans regardless of when they were taken out?

Accepted Answer

Fixed interest rates set at the time of disbursement

Answer

Federal student loans have fixed interest rates that are set by Congress and apply for the life of the loan, providing payment predictability.

Question 5

Which federal grant program is specifically for students who are training to become teachers in high-need subject areas?

Accepted Answer

TEACH Grant

Answer

The Teacher Education Assistance for College and Higher Education (TEACH) Grant provides up to $4,000 per year to students who plan to teach in high-need fields at schools serving low-income students.

FAFSA Practice Test

FAFSA Practice Test

FAFSA Federal Aid Types 2