Southern New Hampshire University
FIN250 - Personal Financial Planning
EXAM 3 questions and answers
1
Ian is a graduate student who is looking to apply for a federal student loan to pay for education expenses
not covered by his existing loan. He decides to opt for a direct PLUS loan.
Which of the following is true about Ian's choice?
If Ian is enrolled in school more than half-time, the interest on
the loan will be paid by the federal government.
Ian's loan will not need to be repaid because it is
government- issued.
Ian will not need to show financial need to receive this type of loan.
The annual amount that Ian can borrow is capped.
RATIONALE
Direct PLUS loans are available to graduate and professional students and parents of undergraduate students to
help pay for education expenses more than the capped amounts available through the other federal student loan
programs. Interest on the loan is added to the loan balance, or students can pay the interest only until they’re no
longer attending school and repayment begins. Students don’t need to show financial need to receive these loans.
CONCEPT
Student Loans
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