Regarding Student Loans,which of the Following Is True

question 77

Multiple Choice

Regarding student loans,which of the following is true?

• A) They are available only for undergraduate.
• B) Parents (or legal guardians)must cosign.
• C) There is a limit on how much can be borrowed.
• D) They have to take loan only from one of the government programs.
• E) Interest does not have to be paid.

---

Definitions:

Compounded Quarterly

The process where interest is added to the principal sum of a deposit or loan every three months, leading to interest earnings on interest.

RRSP

RRSP stands for Registered Retirement Savings Plan, which is a savings plan sponsored by the Canadian government that allows individuals to save for retirement on a tax-deferred basis.

RRIF

A Registered Retirement Income Fund, a tax-deferred retirement plan in Canada designed to provide income to beneficiaries.

Nominal Rate

The stated interest rate of a financial instrument or loan, not accounting for compounding or inflation.