everfi Repaying loans
Which of the following is an example of how high student loan debt can impact a person's life decisions? High student loan debt can be used as collateral and improve a person's chance at buying a car. High student loan debt can make it easier to borrow more and continue studies in graduate school. A person may choose to buy a house instead of renting an apartment since they can afford a large down payment. A person may choose to use public transportation instead of buying a car since they can't afford a down payment. Submit Next
A person may choose to use public transportation instead of buying a car since they can't afford a down payment.
If Gabi wants to pay off her student loan by starting with a low amount and then increasing it every two years, what type of repayment plan is best for her? Extended repayment plan Income-driven repayment plan Standard repayment plan Graduated repayment plan Submit Next
Graduated repayment plan
Which is an example of an income-driven repayment plan for student loans? Payment amounts are based on a percentage of what you earn. Payments are low and can last up to 25 years. Payments are the same every month for 10 years. Payments start lower and increase every 2 years.
Payment amounts are based on a percentage of what you earn.
Which is an example of an income-driven repayment plan for student loans? Payments are low and can last up to 25 years. Payments are the same every month for 10 years. Payments start lower and increase every 2 years.
Payment increases with salary
What are two ways that can help you keep a budget while trying to reduce debt load from loans? Tracking expenses and evaluating spending Evaluating spending and paying interest only on loans Focusing on wants and savings
Tracking expenses and evaluating spending
One consequence for defaulting on a student loan is loan acceleration. What does this mean? You must prepay all the interest on the loan now. Bill payment is required every week. You must pay the loan back twice as fast. You owe the amount of your loan and interest immediately. Submit Next
You owe the amount of your loan and interest immediately.
Which of the following is not true if you default on a student loan? You will have your passport taken away. You may be taken to court and have to pay all fees. Your tax refund may be withheld. You may not be eligible for additional financial aid for future studies. Submit Next
You will have your passport taken away.
In order to qualify to refinance a student loan, you will need _____. a good credit score and good income-to-debt ratio to have only one loan in your own name a high paying job and significant savings
a good credit score and good income-to-debt ratio
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_____. default programs deferment programs refinance programs
forgiveness programs
When creating a budget to repay your student loans, you should plan to pay back _____. interest and principal only principal only interest
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 easier to get new credit cards make it much harder to borrow money in the future make it difficult to be accepted into graduate schools
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
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
