Module 5
1. If you need a loan to help with college costs it should be a Federal Student Loan. What is
NOT true regarding federal student loans?
Answer ______
a. They are usually less expensive (have lower interest rates and fees) than other types
of loans a student can get.
b. They are easier to get (the student’s credit history is not considered).
c. The interest rates are higher on these loans than most other types of student loans.
d. The have repayment plans that are usually better than most other loans used to meet
the costs of college
2. The two main kinds of Federal Student Loans that may be available to a student are:
Answer ______
a. Pell and PLUS.
b. Perkins and Stafford.
c. PLUS and IRA.
d. IRA and Stafford.
3. If a student doesn’t make satisfactory academic progress, as defined by their school, they
could lose eligibility for federal student aid.
Answer ______
a. True
b. False
4. Which is NOT true regarding private education loans? Answer ______
a. The borrower usually has to pass a credit history check.
b. Repayment plans are usually not as flexible as Federal Student Loans.
c. Interest rates and fees are usually lower than Federal Student Loans.
d. Interest rates and fees are usually higher than Federal Student Loans.
e. Visit www.mycollegemoneyplan.org for additional resources and information
