by alex
Understanding your rights as a federal student loan borrower is crucial for managing your educational finances effectively. This quiz will help you gauge your knowledge about the various protections and options available to you. Dive in and see how well you know your borrower rights!
Federal Student Loan Borrower Rights Quiz Questions Overview
1. What is the standard repayment period for federal student loans?
5 years
10 years
15 years
20 years
2. Which of the following is a right of federal student loan borrowers?
Right to deferment
Right to lower interest rates
Right to loan forgiveness
Right to unlimited borrowing
3. What is an Income-Driven Repayment (IDR) plan?
A plan that bases monthly payments on your income and family size
A plan that extends the repayment period to 30 years
A plan that reduces your interest rate
A plan that consolidates private and federal loans
4. Under what condition can federal student loans be forgiven?
After 5 years of payments
After 10 years of public service
After 15 years of payments
After 20 years of private sector work
5. What is a grace period in the context of federal student loans?
A period when interest rates are reduced
A period when no payments are required after graduation
A period when loan forgiveness is applied
A period when loans are consolidated
6. Which of the following is NOT a type of federal student loan?
Direct Subsidized Loans
Direct Unsubsidized Loans
Private Student Loans
Direct PLUS Loans
7. What should you do if you are having trouble making your federal student loan payments?
Ignore the payments
Apply for deferment or forbearance
Take out another loan
File for bankruptcy
8. What is the purpose of loan consolidation?
To reduce the total amount owed
To combine multiple loans into one loan with a single monthly payment
To increase the interest rate
To extend the grace period
9. How can you check the status of your federal student loans?
By contacting your school’s financial aid office
By visiting the National Student Loan Data System (NSLDS) website
By calling the Department of Education
By checking your credit report
10. What is the main benefit of the Public Service Loan Forgiveness (PSLF) program?
Reduced interest rates
Forgiveness of remaining loan balance after 120 qualifying payments
Extended repayment period
Lower monthly payments
