Financial Literacy and Student Loan Management Quiz

Assess your knowledge on student loans, interest, repayment options, and financial aid with this comprehensive quiz.

Practice Learn Test

Which of the following is a common type of student loan?

Mortgage loan

Car loan

Federal student loan

Personal loan

What is the grace period on most student loans?

6 months

1 year

3 months

No grace period

What is the difference between a fixed interest rate and a variable interest rate on a student loan?

A fixed interest rate stays the same, while a variable interest rate can change over time

A fixed interest rate is always higher than a variable interest rate

A variable interest rate is always higher than a fixed interest rate

A variable interest rate is paid by the government

What is the difference between a grant and a loan?

A grant is free money that does not need to be repaid, while a loan is borrowed money that must be repaid with interest

A grant is borrowed money that must be repaid with interest, while a loan is free money that does not need to be repaid

A grant is money given to you by a friend, while a loan is money borrowed from a financial institution

A grant is money borrowed from a financial institution, while a loan is money given to you by a friend

What is the difference between a federal student loan and a private student loan?

Federal student loans are always need-based, while private student loans are not

Federal student loans have fixed interest rates, while private student loans have variable interest rates

Federal student loans are funded by the government, while private student loans are funded by banks, credit unions, and other private lenders

Federal student loans require a credit check, while private student loans do not

What is the FAFSA?

A scholarship program

A student loan forgiveness program

A financial aid application

A student credit card

Which of the following is true about interest on student loans?

Interest rates on federal student loans are fixed

Interest rates on private student loans are always lower than federal loans

Interest on student loans only starts accruing after graduation

Interest rates on student loans are not influenced by credit score

Which of the following is NOT a way to pay off student loans faster?

Making extra payments toward the principal

Using an income-driven repayment plan

Refinancing to a longer loan term

Employer-sponsored student loan repayment assistance

What is the difference between subsidized and unsubsidized federal student loans?

Subsidized loans are only available to graduate students

Interest on subsidized loans is paid by the government while the student is in school

Unsubsidized loans have lower interest rates than subsidized loans

Unsubsidized loans require a higher credit score

#10

Which of the following is a consequence of defaulting on a student loan?

Loss of eligibility for federal student aid

Increased chances of getting approved for future loans

No impact on credit score

No impact on ability to buy a house

#11

What is loan forbearance?

A period during which you can temporarily stop making loan payments

A loan with no interest

A loan that is forgiven after a certain period

A loan with reduced interest rates

#12

What is the difference between loan consolidation and refinancing?

They are the same thing

Consolidation combines multiple loans into one, while refinancing replaces a loan with a new one

Refinancing is only available for federal loans, while consolidation is for private loans

Consolidation is for lowering interest rates, while refinancing is for increasing them

#13

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

A program that forgives student loans for borrowers who work in certain public service jobs

A program that lowers the interest rate on student loans

A program that extends the repayment period for student loans

A program that provides grants to pay off student loans

#14

How does defaulting on a student loan affect your credit score?

It has no effect

It improves your credit score

It lowers your credit score

It eliminates your credit score

#15

What is the 50/30/20 rule in budgeting?

A rule that states you should spend 50% of your income on needs, 30% on wants, and 20% on savings and debt repayment

A rule that states you should spend 30% of your income on needs, 50% on wants, and 20% on savings and debt repayment

A rule that states you should spend 20% of your income on needs, 50% on wants, and 30% on savings and debt repayment

A rule that states you should spend 20% of your income on needs, 30% on wants, and 50% on savings and debt repayment