Skill Assessment Financial Aid

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| By Defaultpreventio
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Defaultpreventio
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Quizzes Created: 9 | Total Attempts: 1,963
Questions: 20 | Attempts: 132

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Skill Assessment Quizzes & Trivia

This quiz is designed to assess your knowledge of topics within Financial Aid.

You have been allotted 30 minutes to complete the quiz. Please review each answer prior to submitting as the online quiz will only allow you to submit the answer once and will provide the correct answer following your submission. Unanswered or blank submissions will be marked as incorrect.

WARNING: Timer may show you have X mins, X secs left. This DOES NOT reflect accurate time when you stop to read Answer Explanation. You will have time at the end of the Quiz to view Read moreExplanations for each answer.

This quiz contains True/False, fill in the blank, check all that apply and multiple choice questions.

Enter your First and Last name in the box below (example: John Doe).


Questions and Answers
  • 1. 

    The U.S. Department of Education makes loans through the Direct Loan Program and the ______________ Program.

    • A.

      A. Federal Financial Educating Loan (FFEL)

    • B.

      B. Federal Family Education Loan (FFEL)

    • C.

      C. Friends Family Education Loan (FFEL)

    Correct Answer
    B. B. Federal Family Education Loan (FFEL)
    Explanation
    Correct answer is B
    Federal Family Education Loan (FFEL) Program. Subsidized, Unsubsidized, PLUS and Consolidation Loans are made through one of the two U.S. Department of Education programs – the Direct Loan Program or the Federal Family Education Loan (FFEL) Program.

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  • 2. 

    Interest is not charged to students or borrowers while enrolled at least half-time, during the grace period and during deferment periods on subsidized loans.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Correct answer is True.
    Although interest accrues, the federal government will pay the interest while you are enrolled at least half-time, during your grace period and during deferment periods.

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  • 3. 

    Unsubsidized loans are ___________.

    • A.

      A. Not based on financial need

    • B.

      B. Based on financial need

    • C.

      C. For parents

    Correct Answer
    A. A. Not based on financial need
    Explanation
    Correct answer is A
    Not based on financial need. You are not required to have financial need to qualify for an unsubsidized loan.

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  • 4. 

    You may choose to pay the interest on your unsubsidized loans while you are in school.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Correct answer is True.
    You can pay the interest that accrues while you are in school to prevent it from capitalizing or being added to your principal balance when you leave school.

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  • 5. 

    What types of loans accumulate interest?

    • A.

      A. Subsidized

    • B.

      B. Unsubsidized

    • C.

      C. ParentPLUS

    • D.

      D. All the above

    Correct Answer
    D. D. All the above
    Explanation
    Correct answer is D
    All of the above. Interest accumulates or accrues on all loan types – Subsidized, Unsubsidized and ParentPLUS.

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  • 6. 

    You may prepay all or part of your loan(s) without a penalty.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Correct answer is True.
    You may prepay all or part of your loan(s) without a penalty.

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  • 7. 

    In order to qualify for the extended repayment plan, you must have more than $_______ in outstanding FFEL Program loans.

    Correct Answer
    30000
    30,000
    30k
    thirty thousand
    $30,000
    Explanation
    Correct answer is B
    $30,000. Under the terms of the extended repayment plan, you must have more than $30,000 in outstanding FFEL Program loans. This means if you have $35,000 in outstanding FFEL Loans and $20,000 in Direct Loans, you can choose the extended repayment plan for your FFEL Loans, but not for your Direct Loans.

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  • 8. 

    You can change repayment plans once a year for your FFELP loans.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Correct answer is True.
    Under the FFEL Program, you can change repayment plans once a year.

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  • 9. 

    Under the Standard Repayment Plan, you generally must pay at least ________ per month for up to ______ years.

    • A.

      A. $25, 10

    • B.

      B. $40, 25

    • C.

      C. $50, 10

    Correct Answer
    C. C. $50, 10
    Explanation
    Correct answer is C
    $50, 10. On the standard repayment plan, you generally pay a fixed amount of at least $50 each month for up to 10 years.

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  • 10. 

    If you do not receive a bill or repayment notice, you still must make your monthly payment.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Correct answer is True.
    You must make your monthly payment on your loan even if you don’t receive a bill or repayment notice.

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  • 11. 

    The National Student Loan Database System (NSLDS) allows borrowers to view...

    • A.

      A summary of awarded Private and Federal Student Loans

    • B.

      A summary of awarded Federal Student Loans and Grants

    • C.

      A summary of outstanding balance of tutition owed directly to school

    Correct Answer
    B. A summary of awarded Federal Student Loans and Grants
    Explanation
    Correct answer is B Summary of awarded Federal Student Loans and Grants.

    The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

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  • 12. 

    You may postpone or __________ your monthly payment for a specific period with a forbearance.

    • A.

      A. Stop

    • B.

      B. Reduce

    • C.

      C. Continue

    Correct Answer
    B. B. Reduce
    Explanation
    Correct answer is B
    Reduce. You may postpone or reduce your monthly payment if you are temporarily unable to make your scheduled loan payments for reasons including financial hardship or illness.

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  • 13. 

    There are many conditions that may qualify for a deferment, including ____________.

    • A.

      A. Peace Corps Service

    • B.

      B. inability to find full-time employment

    • C.

      C. being in school at least half-time

    • D.

      D. all of the above

    Correct Answer
    D. D. all of the above
    Explanation
    Correct answer is D
    All of the above. You may apply for a deferment if you are enrolled at least half-time, unemployed, experiencing an economic hardship or if you are serving in the Peace Corps. You can check with your loan servicer to get a complete listing of all deferments that are available.

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  • 14. 

    (Check all that apply) Some consequences of allowing a student loan to default are _____________.

    • A.

      Loss of entitlement options like deferments

    • B.

      Account may be turned over to a collection agency

    • C.

      Federal and state income tax refunds can be withheld and applied to the student loan

    • D.

      Inability to obtain additional financial aid

    Correct Answer(s)
    A. Loss of entitlement options like deferments
    B. Account may be turned over to a collection agency
    C. Federal and state income tax refunds can be withheld and applied to the student loan
    D. Inability to obtain additional financial aid
    Explanation
    Correct answer is all of them.
    There are serious consequences for defaulting on a student loan that include loss of being eligible to apply for a forbearance or deferment, having the account turned over to a collection agency, having your tax refunds offset or withheld and applied to the student loan, inability to obtain additional financial aid, or suspend professional licenses.

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  • 15. 

    A student can consolidate one federal student loan.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Correct answer is True.
    Consolidation is similar to refinancing a loan. A borrower can consolidate all, just some, or even just one federal student loan.

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  • 16. 

    (Check all that apply) The following repayment plans can be granted and applied over the telephone with the servicer.

    • A.

      Graduated Repayment Plan

    • B.

      Extended Repayment Plan

    • C.

      Income-Based Repayment Plan

    Correct Answer(s)
    A. Graduated Repayment Plan
    B. Extended Repayment Plan
    Explanation
    Correct answer is Graduate and Extended Repayment Plan.
    Most servicers prefer the processing of Graduated and Extended Repayment Plans to be processed via phone to ensure the student is provided with projected monthly payment adjustments to complete total loan payoff.

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  • 17. 

    (Check all that apply) The government will pay any unpaid interest for the first three years on a subsidized federal student loan when the borrower has applied the following to his/her federal student loan: 

    • A.

      Forbearance

    • B.

      Deferment [DUEM & DHAR]

    • C.

      Income-Based Repayment

    Correct Answer(s)
    B. Deferment [DUEM & DHAR]
    C. Income-Based Repayment
    Explanation
    Correct answer is Deferment (DUEM & DHAR) and Income-Based Repayment.
    The Federal Government will pay any unpaid interest on subsidized loan during authorized deferment periods.

    If a student's monthly IBR payment amount does not cover the interest that accrues on his/her loans each month, the government will pay any unpaid accrued interest on the Subsidized Stafford Loans (either Direct Loan or FFEL) for up to three consecutive years from the date the student began repaying his/her loans under IBR.

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  • 18. 

    A student has to be a graduate student to qualify for the Graduated Repayment Plan.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Correct answer if False.
    With this plan, the student's payments start out low and increase every two years. The length of the repayment period will be up to ten years. If the student expects his/her income to increase steadily over time, this plan may be right for him/her. The monthly payment will never be less than the amount of interest that accrues between payments. Although the monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment. There is no graduate status required for this repayment plan.

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  • 19. 

    Danny withdraws from school. He returns to school four months later. Danny then gradutes. How many months of grace does Danny have until he is required to begin repayment?

    • A.

      A. He begins repayment immediately

    • B.

      B. Two months

    • C.

      C. Six months

    Correct Answer
    C. C. Six months
    Explanation
    Correct answer is C.
    Regardless of whether at student received subsidized or unsubsidized funds, the Stafford Loan has a six-month grace period. If the student allows his/her six-month grace period to elapse after leaving school, the Stafford Loan will not be eligible to receive a new grace period in the future. However, if the student interrupts his/her initial grace period by going back to school, enroll in enough units to maintain at least half-time status in a qualifying course of study and file the appropriate student deferment form, s/he will be allotted another six-month grace period.

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  • 20. 

    A student in jail can apply for the Unemployment Deferment.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Correct answer is False.

    The following conditions must be met in order to qualify:

    1. Student must be diligently seeking but unable to find full-time employment in any field or at any salary or responsibility level even if student is not eligible for unemployment benefits (or if eligibility expired).
    2. Student must be registered with a private or public employment agency if there is one within 50 miles of his/her permanent or temporary address. School placement offices and “temporary agencies” do not qualify as public or private employment agencies.
    3. If student is requesting an extension of current unemployment deferment, and is not providing documentation of eligibility for unemployment benefits, s/he must certify that s/he has made at least 6 diligent attempts to find employment on the most recent 6 months by checking the box in Section 2, Item B.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 13, 2012
    Quiz Created by
    Defaultpreventio
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