Modules (5-6) Questions
Forgiveness programs.
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_____.
A lender pays off your existing loan and offers a new loan with a different interest rate, payment schedule and terms.
What happens when you refinance a student loan?
No financial aid offers need to be subtracted from a schools cost of attendance to determine how affordable a school is.
Does an offer of more grants and scholarships mean one school is cheaper than another school?
It can make it much harder to borrow money in the future.
Having a high debt-to-income ratio or defaulting on your loan can bring down your credit score. How can a low credit score on your credit report affect you?
Being able to afford food.
High student loan payments can impact all of the following life decisions except _____.
Income-Driven Repayment Plan.
If Alejandro wants to pay off his student loan by basing it on how much he is earning at his job after graduation, what type of repayment plan is best for him?
Needs
When using the 50-30-20 rule to budget, what category are loan payments in?
Variable interest.
Which type of interest can change over the life of a loan?
Reapply for aid every year.
Financial aid letters from institutes of higher education show your yearly aid and costs for attending. This means that you will need to_____.
Cost Of Attendance (COA).
If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget?
Tuition, fees, room and board, books, supplies, and other expenses.
If you calculate the cost of attendance (COA) at an institute of higher education, what are you including?
You may not a get a job that requires a transcript.
One consequence for defaulting on a loan is having your transcript withheld. How could this affect you as you graduate?
You need to borrow in loans or pay out of pocket.
The amount of money you will still need after subtracting scholarships, grants, and work study will help determine the amount of money _____.
Higher the monthly payment but less interest payed over the life of the loan.
The shorter a loan's term, the _____.
The additional costs paid each year in order to borrow money in loans, including both interest and fees.
What is an annual percentage rate (APR)?
A percentage of the loan that is charged to cover the cost of giving the loan.
What is an origination fee on a loan?
Expected Family Contribution (EFC)
What is considered by the federal government to be what your family will be able to pay per year toward your school expenses?
Interest and Principal.
When creating a budget to repay your student loans, you should plan to pay back _____.
Payments are low and can last up to 25 years.
Which is an example of an extended repayment plan for student loans?
You will have your degree taken away.
Which of the following is NOT true if you default on a student loan?
You're about to move into a new home.
Which of the following is not a good reasons to refinance a student loan?
