Financial Aid Scams and Frauds

Description: This quiz is designed to test your knowledge about Financial Aid Scams and Frauds. It covers various types of scams, red flags to watch out for, and tips to protect yourself from becoming a victim.
Number of Questions: 15
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Tags: financial aid scams frauds scholarships grants loans
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Which of the following is a common type of financial aid scam?

  1. Phishing emails

  2. Fake websites

  3. Identity theft

  4. All of the above


Correct Option: D
Explanation:

Phishing emails, fake websites, and identity theft are all common types of financial aid scams. Phishing emails try to trick you into giving up your personal information, such as your Social Security number or bank account number. Fake websites look like legitimate financial aid websites, but they are actually designed to steal your information. Identity theft occurs when someone uses your personal information to apply for financial aid in your name.

What is one red flag to watch out for when applying for financial aid?

  1. Being asked to pay a fee upfront

  2. Being promised a guaranteed scholarship or grant

  3. Being pressured to apply for a loan you don't need

  4. All of the above


Correct Option: D
Explanation:

All of the above are red flags to watch out for when applying for financial aid. You should never have to pay a fee upfront to apply for financial aid. You should also be wary of any promises of guaranteed scholarships or grants. And you should never be pressured to apply for a loan you don't need.

What is the best way to protect yourself from becoming a victim of a financial aid scam?

  1. Be aware of common scams and red flags

  2. Only apply for financial aid through official channels

  3. Never give out your personal information to anyone you don't trust

  4. All of the above


Correct Option: D
Explanation:

All of the above are ways to protect yourself from becoming a victim of a financial aid scam. You should be aware of common scams and red flags, only apply for financial aid through official channels, and never give out your personal information to anyone you don't trust.

What should you do if you think you have been the victim of a financial aid scam?

  1. Contact the financial aid office at your school

  2. File a complaint with the Federal Trade Commission (FTC)

  3. Contact your local police department

  4. All of the above


Correct Option: D
Explanation:

If you think you have been the victim of a financial aid scam, you should contact the financial aid office at your school, file a complaint with the Federal Trade Commission (FTC), and contact your local police department.

What is the maximum amount of money that a student can borrow in federal student loans each year?

  1. $12,500

  2. $20,500

  3. $30,000

  4. $40,000


Correct Option: A
Explanation:

The maximum amount of money that a student can borrow in federal student loans each year is $12,500 for undergraduate students and $20,500 for graduate students.

What is the interest rate on federal student loans?

  1. 4.99%

  2. 5.99%

  3. 6.99%

  4. 7.99%


Correct Option: A
Explanation:

The interest rate on federal student loans is 4.99% for undergraduate students and 6.99% for graduate students.

What is the repayment period for federal student loans?

  1. 10 years

  2. 15 years

  3. 20 years

  4. 25 years


Correct Option: A
Explanation:

The repayment period for federal student loans is 10 years for undergraduate students and 20 years for graduate students.

What is the grace period for federal student loans?

  1. 6 months

  2. 9 months

  3. 12 months

  4. 18 months


Correct Option: A
Explanation:

The grace period for federal student loans is 6 months after you graduate or leave school.

What is the name of the federal program that allows students to consolidate their federal student loans?

  1. Direct Consolidation Loan

  2. Federal Consolidation Loan

  3. Student Loan Consolidation Program

  4. Loan Consolidation Program


Correct Option: A
Explanation:

The name of the federal program that allows students to consolidate their federal student loans is the Direct Consolidation Loan.

What is the name of the federal program that allows students to pay back their federal student loans based on their income?

  1. Income-Based Repayment

  2. Pay As You Earn Repayment

  3. Revised Pay As You Earn Repayment

  4. Income-Contingent Repayment


Correct Option: A
Explanation:

The name of the federal program that allows students to pay back their federal student loans based on their income is Income-Based Repayment.

What is the name of the federal program that allows students to have their federal student loans forgiven after 20 years of public service?

  1. Public Service Loan Forgiveness

  2. Teacher Loan Forgiveness

  3. Nurse Loan Forgiveness

  4. Social Worker Loan Forgiveness


Correct Option: A
Explanation:

The name of the federal program that allows students to have their federal student loans forgiven after 20 years of public service is Public Service Loan Forgiveness.

What is the name of the federal program that allows students to have their federal student loans forgiven after 10 years of teaching in a low-income school?

  1. Teacher Loan Forgiveness

  2. Public Service Loan Forgiveness

  3. Nurse Loan Forgiveness

  4. Social Worker Loan Forgiveness


Correct Option: A
Explanation:

The name of the federal program that allows students to have their federal student loans forgiven after 10 years of teaching in a low-income school is Teacher Loan Forgiveness.

What is the name of the federal program that allows students to have their federal student loans forgiven after 10 years of working as a nurse or other health care professional in a public or non-profit setting?

  1. Nurse Loan Forgiveness

  2. Public Service Loan Forgiveness

  3. Teacher Loan Forgiveness

  4. Social Worker Loan Forgiveness


Correct Option: A
Explanation:

The name of the federal program that allows students to have their federal student loans forgiven after 10 years of working as a nurse or other health care professional in a public or non-profit setting is Nurse Loan Forgiveness.

What is the name of the federal program that allows students to have their federal student loans forgiven after 10 years of working as a social worker in a public or non-profit setting?

  1. Social Worker Loan Forgiveness

  2. Public Service Loan Forgiveness

  3. Teacher Loan Forgiveness

  4. Nurse Loan Forgiveness


Correct Option: A
Explanation:

The name of the federal program that allows students to have their federal student loans forgiven after 10 years of working as a social worker in a public or non-profit setting is Social Worker Loan Forgiveness.

What is the name of the federal program that allows students to have their federal student loans forgiven after 10 years of working in a rural area?

  1. Rural Health Care Loan Forgiveness

  2. Public Service Loan Forgiveness

  3. Teacher Loan Forgiveness

  4. Nurse Loan Forgiveness


Correct Option: A
Explanation:

The name of the federal program that allows students to have their federal student loans forgiven after 10 years of working in a rural area is Rural Health Care Loan Forgiveness.

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