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Quiz: Test Your Knowledge of Student Loans

A back-to-school test before you go back to school

AARP

En español

Published January 31, 2022

8 Questions

d8e9b9ef-2327-4fc7-bd07-793d6812cea6

Quiz: Test Your Knowledge of Student Loans

[ {
  "question" : "Student loans are available only to people 30 and under.",
  "answers" : [ {
    "answer" : "Yes",
    "correctAnswer" : false
  }, {
    "answer" : "No",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "There’s no age limit. In fact, people over 50 account for about 20 percent of all student loans.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Interest on student loans is tax-deductible.",
  "answers" : [ {
    "answer" : "Yes",
    "correctAnswer" : true
  }, {
    "answer" : "No",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "You can take a deduction for all student loan interest (up to $2,500 a year) even if you take the standard deduction and don’t itemize. The deduction is phased out for people with high incomes.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "What is a FAFSA?",
  "answers" : [ {
    "answer" : "Fast And Fresh Salsa Appetizer ",
    "correctAnswer" : false
  }, {
    "answer" : "Free Application for Federal Student Aid",
    "correctAnswer" : true
  }, {
    "answer" : "Free Admission For Senior Athletes",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "You must fill out the Free Application for Federal Student Aid (FAFSA) to get a federal student loan. You don’t need a FAFSA for a private student loan.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "How much money in federal student loans can undergraduate students borrow each year?",
  "answers" : [ {
    "answer" : "The sky’s the limit",
    "correctAnswer" : false
  }, {
    "answer" : "Up to $4,500",
    "correctAnswer" : false
  }, {
    "answer" : "$5,500 to $12,500",
    "correctAnswer" : true
  }, {
    "answer" : "$8,000 to $15,000",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "The amount depends on what year you’re in school and whether you can be claimed as a dependent by someone else. If you’re a dependent, you have to include your parents’ information on your FAFSA.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "How many payments do you have to make to get Public Service Loan Forgiveness (PSLF)?",
  "answers" : [ {
    "answer" : "12",
    "correctAnswer" : false
  }, {
    "answer" : "36",
    "correctAnswer" : false
  }, {
    "answer" : "60",
    "correctAnswer" : false
  }, {
    "answer" : "120",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "If you’re a teacher, police officer, firefighter or have some other public service job, you may be able to get forgiveness after 10 years of loan payments.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Which one of these federal loans is aimed at grad or professional students and parents?",
  "answers" : [ {
    "answer" : "Direct subsidized loans",
    "correctAnswer" : false
  }, {
    "answer" : "Direct unsubsidized loans",
    "correctAnswer" : false
  }, {
    "answer" : "Direct PLUS loans",
    "correctAnswer" : true
  }, {
    "answer" : "Direct consolidation loans",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Loans for grad students are grad PLUS loans; loans for parents are parent PLUS loans. Unlike other student loans, you start making payments when you receive the loan money, although you can request a deferment.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Which is not an advantage of a federal student loan?",
  "answers" : [ {
    "answer" : "Fixed interest rate",
    "correctAnswer" : false
  }, {
    "answer" : "Can be consolidated with other student loans",
    "correctAnswer" : false
  }, {
    "answer" : "Can be refinanced ",
    "correctAnswer" : true
  }, {
    "answer" : "No prepayment penalties",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Although you can consolidate several student loans, you typically can’t refinance them. Private lenders may allow you to refinance.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "What type of student loan typically has the lowest interest rate?",
  "answers" : [ {
    "answer" : "Direct PLUS loans",
    "correctAnswer" : false
  }, {
    "answer" : "Subsidized federal student loans ",
    "correctAnswer" : true
  }, {
    "answer" : "Unsubsidized federal student loans",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "In general, subsidized loans have lower rates than unsubsidized ones.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
} ]

Quiz Progress

0 Correct

0 Incorrect