Loans Student Loans 2

Question 1

What is the Public Service Loan Forgiveness (PSLF) program?

Accepted Answer

Forgiveness of remaining federal loan balance after 120 qualifying payments while working for a qualifying public employer

Answer

A program that forgives loans after 10 years of any employment

Answer

A grant program for public school teachers only

Answer

An automatic forgiveness program based on income alone

Question 2

Which of the following is NOT an income-driven repayment (IDR) plan for federal student loans?

Accepted Answer

Graduated Extended Repayment (GER)

Answer

Income-Based Repayment (IBR)

Answer

Income-Contingent Repayment (ICR)

Answer

Pay As You Earn (PAYE)

Question 3

What is the annual borrowing limit for a first-year dependent undergraduate student under the federal Direct Loan program?

Accepted Answer

$5,500

Answer

$7,500

Answer

$9,500

Answer

$12,500

Question 4

Student loan deferment allows borrowers to:

Accepted Answer

Temporarily postpone payments, though interest may still accrue

Answer

Permanently eliminate the loan balance

Answer

Transfer the loan to a family member

Answer

Lower the interest rate immediately

Question 5

What is the primary risk of refinancing federal student loans with a private lender?

Accepted Answer

The borrower loses access to federal protections like IDR plans and PSLF

Answer

The interest rate always increases

Answer

The credit score drops permanently

Answer

The loan term is automatically extended to 30 years

Question 6

Which type of loan requires a credit check and can be taken out by graduate students or parents of undergraduates?

Accepted Answer

Direct PLUS Loan

Answer

Direct Subsidized Loan

Answer

Direct Unsubsidized Loan

Answer

Perkins Loan