Student loan Quiz

1. Which of the following is not a student loan payoff strategy?

Participating in an income based repayment program.

Refinancing your student loan for lower interest rates.

Payments toward the principle amount on the highest interest bearing account.

All of these

Leveraging your Federal loans for your Private loans.

2. Student loan minimum payments are designed to last a long time so a lender can collect on interest.

False

True

3. Federal loans are more negotiable in terms of repayment options than Private loans lenders.

False

True

4. How would you pay down your student loan debt using the Avalanche Method?

Arrange your loans by highest to lowest interest rate and pay any extra money toward the loan with the highest interest.

Arrange your loans by highest to lowest interest rate and pay any extra money toward the loan with the largest minimum payment.

None of these

Arrange your loans by lowest to highest interest rate and pay any extra money toward the loan with the largest minimum payment.

Arrange your loans by lowest to highest interest rate and pay any extra money toward the loan with the lowest interest.

5. What can you do when you can not afford the minimum payments for your student loans?

Talk to your lender about forbearance.

Talk to your lender about deferment.

All of these

Talk to your lender about consolidating your loans.

Talk to your lender about their hardship programs.

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