Test what you learned: Student Loan vs 529 Savings key terms

3 quick questions on the terms from the Student Loan vs 529 Savings calculator. Answer one at a time, then see your full results at the end.

Question 1 of 3

A "529 plan" is...

A federal loan program exclusively for graduate students A type of scholarship awarded based on financial need A tax-advantaged account for education savings — investment growth is tax-free if used for school A savings account that can only be opened after a child turns 18

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A 529 plan is a tax-advantaged education savings account — investment growth inside it is tax-free when used for qualified school expenses.

Question 2 of 3

"Capitalized interest" means...

Interest that's automatically forgiven after graduation A fixed fee charged once, at the start of the loan The maximum interest rate allowed on federal student loans Loan interest that gets added to your principal, so it then earns interest too

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Capitalized interest gets added to your loan's principal — meaning you then pay interest on what was previously just interest.

Question 3 of 3

An "origination fee" is...

A fee charged only if you pay off your loan early An annual fee charged for maintaining an active loan A fee subtracted from your loan the moment it's disbursed, before you see the money A fee refunded in full once the loan is fully repaid

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An origination fee is subtracted the moment your loan is disbursed — you actually receive less than the full amount you borrowed.

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This quiz is a learning aid, not a certification or formal assessment. GetRealTerms provides general estimates for informational purposes only — nothing here is tax or financial advice.