2
QuizMultiple Choice

Student Loans — Quiz

Question 2 • Financial Algebra/Mathematics

What limitation applies to federal PLUS loans?

Answer
A
They are available only to undergraduate students.
B
No credit check is required.
C
A credit check is required.
D
Interest does not accrue while the student is in school.

Explanation

Federal PLUS loans require a credit check to determine whether the borrower has an adverse credit history. Therefore, “A credit check is required” is the correct choice; the other statements are inaccurate because PLUS loans can also be for graduate students, and interest generally accrues while the student is in school.

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