Student loans allow students to attend college without having to pay for every cost upfront. However, depending on how interest is calculated, student loan debt can weigh heavily on your future finances.
Watch the video to learn about Student Loans and Paying for College, then test your knowledge at the end of the lesson.
What type of loans are offered by government-authorized lending companies and applied for through FAFSA?
A. Private student loans
B. 529 direct loans
C. Federal direct loans
D. Roth student loans
What is the difference between direct subsidized federal loans and direct unsubsidized federal loans?
A. With subsidized loans, the government pays the interest while you’re in school. With unsubsidized loans, the government does not pay interest for you.
B. With subsidized loans, the government does not cover interest while you’re in school. With unsubsidized loans, the government pays the interest for you.
C. With subsidized loans, the full loan amount must be paid back 5 years after graduating. With unsubsidized loans, the repayment term depends on your income.
D. With subsidized loans, the repayment term depends on your income. With unsubsidized loans, the full loan amount must be paid back 5 years after graduating.
Direct PLUS loans are special federal loans available to eligible parents and graduate or professional students.
A. True
B. False