EverFi: Repaying Loans Responsibly

What happens when you refinance a student loan?

A lender pays off your existing loan and offers a new loan with a different interest rate, payment schedule and terms.

High student loan payments can impact all of the following life decisions except _____.

being able to afford food

Opportunities to reduce or wipe away part of a loan amount based on your public service or by being a teacher in a low-income public school are called_____.

forgiveness programs

When creating a budget to repay your student loans, you should plan to pay back _____.

interest and principal

Having a high debt-to-income ratio or defaulting on your loan can bring down your credit score. A low credit score on your credit report can _____.

make it much harder to borrow money in the future

Taking care of your _____ first is a good budgeting strategy that includes covering your loan payments.

needs

Which is an example of a graduated repayment plan for student loans?

Payments start lower and increase every 2 years.

If Emmett wants to pay off his student loan by making monthly payments for 10 years, what type of repayment plan is best for him?

Standard repayment plan

One consequence for defaulting on a loan is having your transcript withheld. How could this affect you as you graduate?

You may not get a job that requires a transcript.

Which of the following is not true if you default on a student loan?

You will have your degree taken away.