Quiz: How well do you know your student loan facts?

08 Mar 2019

You may have your heart set on going to university, but we all know how tuition fees can be a major hurdle to overcome.

While there are merit and needs-based scholarships offered by both the private and public sector, you may not qualify for them, or may only obtain a partial scholarship in some instances. So how do you cough up the remaining fees?

If you, like thousands of other students before you, are planning on financing your tertiary education via a student loan, you will need to ensure you understand what the loan entails.

Since the devil is in the details, let’s see how well you know your student loan facts with our quiz before you sign the dotted line.

1. What is a grace period?

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A period (typically six months) where you do not need to pay back the loan

The period you commence your studies

Correct! Wrong!

2. Is it possible to extend your student loan payment?

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Yes, but you will pay higher interest

No, your guarantor will need to continue with your payments

Correct! Wrong!

3. Which of the following is the best option if you are struggling to pay your student loan?

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Take up a personal loan to pay off your student loan

Speak to your loan provider about deferring your payment

Correct! Wrong!

4. What is a guarantor?

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The amount of money you need to deposit with the loan provider before you are granted a loan

A person or company who will be responsible for paying your loan if you fail to do so

Correct! Wrong!

5. What is a loan forbearance?

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A temporary stop of payment or decrease in payment amount for a specific period

When you consistently make regular payments and are given leeway to skip payments for a specific period

Correct! Wrong!

6. What happens if you default on your student loan?

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It can affect your credit rating

Your degree will be revoked

Correct! Wrong!

Quiz: How well do you know thy student loan facts?

Back to square one

If you haven’t signed up for a student loan yet, now’s a good time to do more research online. If you already have a loan under your belt, you may want to go through your contract again or call your student loan provider for clarification of things you don’t understand.

Not bad