NGPF Paying For College 1 Vocab Quiz Game

What is capitalized interest?

• Interest that is forgiven on a student loan

• Interest that is paid monthly

• Unpaid interest added to the principal balance of a loan

• Interest paid by the government on behalf of the student

Who is a cosigner?

• Someone who helps you choose a loan

• Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

• A financial advisor

• A bank representative

What does the cost of attendance include?

• Only tuition fees

• Tuition, room and board, fees, books, transportation, and health insurance

• Tuition and books only

• Room and board only

What is default in terms of loans?

• Making extra payments on a loan

• Long-term failure to repay a loan according to agreed terms

• Paying off a loan early

• Applying for another loan

What is deferment?

• A process that pauses federal student loan payments; interest does not accrue on subsidized loans during this time

• A reduction in loan interest rates

• A way to cancel all student loans

• An increase in loan interest rates

What is delinquency?

• Being ahead on loan payments

• Describing the status of being on time with loan payments

• Describing the status of being behind on one or more loan payments

• Applying for loan forbearance

What are Direct PLUS Loans?

• Federal loans available to undergraduate students only

• Loans given by private lenders

• Federal loans available to graduate/professional students and eligible parents of dependent undergraduate students

• Grants for low-income students

What are Direct Subsidized Loans?

• Federal loans for graduate students only

• Loans where interest is paid by the government while the student is in school at least part-time

• Private loans with no interest benefits

• Loans requiring mandatory co-signers

What are Direct Unsubsidized Loans?

• Loans where interest is paid by the government while the student is in school

• Loans where the student is responsible for paying the interest during school or having it rolled into the principal

• • Loans available only to parents

• Zero-interest loans

What is a disbursement?

• A process of applying a portion of a federal student loan to the student's school account or paying the borrower directly

• Paying off the loan in full

• • Defaulting on a loan

• Applying for another loan