FA Unit Exam Review

All federal loans are administered by?

• US Government

• MA

• Individual Colleges/ Universities

• Private Companies

Direct Subsidized and Unsubsidized loans have a low fixed interest rate of _____

• 43.99%

• 18%

• 6.53%

• 5.05%

1. The max total amount of Direct Subsidized and Unsubsidized loans dependent students can borrow during their first year?

• $5500

• $7500

• $6500

• $31000

If given a choice between a Federal Unsubsidized or Subsidized loan, which one would you choose?

• Direct PLUS Loans

• Private Loans

• Direct Subsidized Loan

• Direct Unsubsidized Loan

1. What type of Direct Loan is NOT offered to undergraduate students or their parents under the Direct Loan Program?

• Subsidized Loans

• Consolidation Loans

• Unsubsidized Loans

• PLUS loans

Federal Direct Loans accrue interest on a ____ basis.

• monthly

• yearly

• daily

• quarterly

When a Federal Direct Loan is in Repayment Status, loan is paid off on a(n) ____ basis.

• monthly

• yearly

• daily

• quarterly

If interest was not paid on an Unsubsidized loan while student was in school. The interest will ____ when it enters repayment.

• decrease.

• be forgiven.

• capitalize

• be cancelled.

What is the definition of accrue?

• To accumulate

• To hold off

• To decrease

• To disburse

Define discretionary income

• The amount you earn after taxes

• The amount of income the government says you should be making.

• The amount remaining after necessities are paid

• The amount of income in a paycheck