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Can You Score A 75% On This Student Loan Repayment Basics Quiz?

Student debt may seem like some scary black cloud looming over your horizon, but with SoFi, you can take control of your payments before they rain on your parade.

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  1. Correct
    Incorrect
    Direct Subsidized Loan
    Correct
    Incorrect
    Direct Unsubsidized Loan
    Correct!
    Wrong!

    Direct Subsidized Loan

    A benefit of qualifying for Direct Subsidized Loans is that the DOE will pay the interest on these loans while you're in school (at least half-time), for the first six months after you leave school, and during a period of deferment (a postponement of loan payments).

  2. Correct
    Incorrect
    Variable
    Correct
    Incorrect
    Fixed
    Correct
    Incorrect
    Flexible
    Correct
    Incorrect
    Static
    Correct!
    Wrong!

    Variable

    Variable interest rates are tied to the market and can fluctuate depending on what the economy looks like. They usually start out pretty low but can increase later, which means you might actually end up paying a higher interest rate over the life of the loan.

  3. Correct
    Incorrect
    Setting up auto-pay
    Correct
    Incorrect
    Always paying on time<br />
    Correct
    Incorrect
    Refinancing your debt<br />
    Correct
    Incorrect
    All of the above
    Correct!
    Wrong!

    All of the above

    Lots of lenders offer a 0.25% interest reduction if you let them automatically withdraw the minimum payment from your bank account every month, and some will reduce your rate after three or four years of consecutive on-time payments. Want to go even further? Refinancing your loans with a private lender can potentially lead to paying off debt faster or lowering your monthly payments.

  4. Correct
    Incorrect
    True
    Correct
    Incorrect
    False
    Correct!
    Wrong!

    False

    Nah, the government doesn't consider your credit score when you apply for a federal loan. Instead, the DOE uses your FAFSA as a factor in deciding how much you can borrow.

  5. Correct
    Incorrect
    3 months
    Correct
    Incorrect
    6 months
    Correct
    Incorrect
    8 months
    Correct
    Incorrect
    1 year
    Correct!
    Wrong!

    6 months

    Most federal student loans give you six months post-grad (or after you become enrolled less than half-time) before you have to start making payments. It's called a "grace-period."

  6. Correct
    Incorrect
    Fixed repayment
    Correct
    Incorrect
    Income-driven repayment
    Correct
    Incorrect
    Standard repayment
    Correct
    Incorrect
    Graduated repayment
    Correct!
    Wrong!

    Standard repayment

    This can often prove to be a good balance between a monthly payment you can afford and also one that will help you pay as little interest as possible in the long run. However, the Standard Plan may not provide you with the lowest payment amount based on your individual circumstances. You may find that your payment will be lower under another repayment plan.

  7. Correct
    Incorrect
    Loan forgiveness
    Correct
    Incorrect
    Loan forbearance
    Correct
    Incorrect
    Loan restriction
    Correct
    Incorrect
    Loan delayment
    Correct!
    Wrong!

    Loan forbearance

    A change in employment status can make you eligible to apply for forbearance. When you’re in forbearance, though, interest still accrues on your loan, even if it’s subsidized.

  8. Correct
    Incorrect
    True
    Correct
    Incorrect
    False
    Correct!
    Wrong!

    False

    Both federal and private loans can qualify for refinancing if you choose to refinance with a private lender. But it’s important to note that federal student loans turn into private student loans once you refinance and become ineligible for some federal loan programs!

There's a lot to know when it comes to repaying your student loans, but never fear! Talk to SoFi for a student loan ReFi 101. They've helped almost 200,000 professionals like you save money on their student debt!

SoFi Lending Corps. is licensed by the Department of Business Oversight under the California Financing Law, #6054612. NMLS #1121636. Terms and conditions apply. See SoFi.com/eligibility for more information.

Images via iStock/Getty Images.
Facts from studentloanhero.com and nerdwallet.com.

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