QUIZ: Financial Literacy 101

Can loan forgiveness have tax consequences?

How long have student loan forgiveness programs existed?

If I falsify information to get student loan forgiveness, can I be charged with a felony?

Student loans are a serious debt to the government and I will have to repay it according to the terms and conditions of my promissory note.

The government gives options for making student loan repayment easier, including:

The consequences of default can include which of the following:

The repayment plan for defaulted loans includes the following:

There are only two choices for paying student loans: voluntary as promised or forced by the government.

If I pay my student loans on time, I will build good credit that I can use in other financial opportunities.

In most repayment plans, if I don’t pay my accruing and unpaid interest, which of the following will occur?

If I make interest-only payments, my loan balance will eventually go down.

Making payments that include both principal and interest will pay my loan off sooner.

Which of the following repayment schedules are easiest to budget? (check all that apply)

With the graduated repayment schedule, the payments may go up faster than my income increases and make it unmanageable to pay.

Which of the following statements are true of Income-Driven Repayment Plans?

Subsidized interest is paid by the government.

During periods of deferment, subsidized interest is paid by the government.

During periods of forbearance, subsidized interest is paid by the government.

Any time an unsubsidized loan payment is delayed, the interest accrues and if it is not paid, it will be added to the principal balance of the loan.

Deferments are designed to temporarily delay payments.

The following are common deferments used by student loan borrowers: (check all that apply)

Forbearance is designed to do the following:

During an Administrative Forbearance, you will not be charged interest.

With a Student Loan Debt Burden Mandatory Forbearance, your payment can be reduced if it is greater than 20% of your total monthly income.

The following are true about Consolidated Loans: (check all that apply)

A Consolidated Loan pays off old loans and creates a new loan and it cannot be reversed once it is finalized.

Scammers often try to take advantage of student loan borrowers in which of the following ways:

You must create an account on StudentAid.gov to apply for, receive, and manage your student loans.

If you don’t know who your federal loan servicer is, which of the following is the best option for finding the information?

A Third-Party Servicer is a company involved with your student loans for the following reasons:

A Third-Party Servicer should identify their company on behalf of your school. For example, “This is Sarah from Champion Col-EDGE Solutions on behalf of ABC School.”

The Family Educational Rights and Privacy Act (FERPA) is a Federal law that protects the privacy of student education records and applies to all schools that receive funds under an applicable program of the U.S. Department of Education.

Whether I call the servicer or the servicer calls me, I must identify myself with two pieces of private information to discuss details about my loan.

FERPA protects me in the following ways: (check all that apply)

When my loans are transferred to a new servicer, the following may apply: (check all that apply)