Utah Financial Literacy State Practice Test

Question: 1 / 400

What is a key feature of student loans?

They require immediate repayment upon disbursement

They typically have higher interest rates than other loans

They may allow deferred repayments while studying

A key feature of student loans is that they may allow deferred repayments while studying. This means that borrowers are often not required to start making payments until after they graduate, or in some cases, until they drop below a certain number of enrolled credits. This feature provides financial relief for students who might not have a stable income while pursuing their education, enabling them to focus on their studies without the additional pressure of managing loan payments right away.

The ability to defer payments also means that students can take the time to find employment after graduation without the stress of having to immediately start repaying their loans, allowing them to secure a job that potentially aligns better with their career goals and financial situation. This flexibility is a significant advantage of student loans compared to other types of loans that usually require immediate repayment.

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They cannot be used for living expenses

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