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Private Financial Aid

Assesses knowledge of scholarships, grants, and private student loans available to students.

11 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the most common type of private financial aid?

  1. Scholarships
  2. Grants
  3. Loans
  4. Work-Study
Question 2 Multiple Choice (Single Answer)

What is the difference between a scholarship and a grant?

  1. Scholarships are based on merit, while grants are based on financial need.
  2. Scholarships are awarded by private organizations, while grants are awarded by the government.
  3. Scholarships are typically larger than grants.
  4. All of the above.
Question 3 Multiple Choice (Single Answer)

What is a private student loan?

  1. A loan that is made by a bank or credit union to a student to help pay for college.
  2. A loan that is made by the government to a student to help pay for college.
  3. A loan that is made by a private organization to a student to help pay for college.
  4. All of the above.
Question 4 Multiple Choice (Single Answer)

What is the difference between a cosigner and a guarantor on a private student loan?

  1. A cosigner is someone who agrees to repay the loan if the student defaults, while a guarantor is someone who agrees to repay the loan if the student dies or becomes disabled.
  2. A cosigner is someone who agrees to repay the loan if the student defaults, while a guarantor is someone who agrees to repay the loan if the student files for bankruptcy.
  3. A cosigner is someone who agrees to repay the loan if the student defaults, while a guarantor is someone who agrees to repay the loan if the student fails to graduate from college.
  4. None of the above.
Question 5 Multiple Choice (Single Answer)

What is the maximum amount of money that a student can borrow in private student loans?

  1. $12,500 per year
  2. $20,500 per year
  3. $31,000 per year
  4. There is no limit.
Question 6 Multiple Choice (Single Answer)

What is the interest rate on private student loans?

  1. Fixed rate of 4.99%
  2. Variable rate that can range from 3.73% to 7.54%
  3. No interest rate
  4. The interest rate is determined by the lender.
Question 7 Multiple Choice (Single Answer)

What is the repayment period for private student loans?

  1. 10 years
  2. 15 years
  3. 20 years
  4. 25 years
Question 8 Multiple Choice (Single Answer)

What are the benefits of private student loans?

  1. Lower interest rates than federal student loans.
  2. More flexible repayment options.
  3. No origination fees.
  4. All of the above.
Question 9 Multiple Choice (Single Answer)

What are the drawbacks of private student loans?

  1. Higher interest rates than federal student loans.
  2. Less flexible repayment options.
  3. Origination fees.
  4. All of the above.
Question 10 Multiple Choice (Single Answer)

How can a student compare private student loans?

  1. Use a student loan comparison website.
  2. Contact the lenders directly.
  3. Ask your financial aid office for help.
  4. All of the above.
Question 11 Multiple Choice (Single Answer)

What is the best way to repay private student loans?

  1. Make extra payments whenever possible.
  2. Refinance your loans to a lower interest rate.
  3. Apply for loan forgiveness.
  4. All of the above.
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