Loan basics
What is a student loan?
What is money borrowed to pay for college education that has to be repaid.
What is federal loan?
What is a sum of money that the US department of education provides to help students pay for college.
What is a private loan?
What is a sum of money provided by a private financial institution to help pay for schooling.
What is interest?
What is the cost of borrowing money.
The Smith family and the Martinez family both have a dad who works as an orthodontist and a mom who stays at home but the Smith family has 7 kids and the Martinez family only has 3 kids. Who would be more eligible for financial aid?
What is the Smith family.
How long is your grace period to repay your loan?
What is 6 months.
How much credit do you need?
What is none.
How much credit do you need?
What is 580 or higher credit score, good income, and dept to income ratio.
What is a repayment plan?
What is an agreement on how the loan will be repaid over time.
Maria gets a scholarship and grants to an expensive university but she still needs $8,000 to cover fees. Should Maria get a private or federal student loan?
What is a federal loan.
What happens if you can't pay back your student loan?
What is depends on the type of loan you have.
What benefits do you get?
Who needs a cosigner?
What is a student who doesn't have enough credit to qualify.
What is a grace period?
What is a period after leaving or dropping below half time enrollment when you don't make regular payments.
With no credit history Javier wants to get a private student loan but he has never had a credit card or a job. What might Javier need to get to get a private student loan?
What is a cosigner.
What happens if you borrow if you borrow more money then you need?
What is more dept and more interest.
What happens if you can't repay?
What is stages of consequences that can lead to severe financial and legal penalties.
What is credit score damage and lawsuits.
What does a lower interest rate mean?
What is paying less interest over time.
Lily is offered $10,000 in student loans but she only needs $6,000 to cover the rest of her education costs. What should she do?
What is borrowing only what you need.
What is the difference between subsidized and unsubsidized loans?
What is subsidized is for undergraduates with financial need and unsubsidized is for undergrads and graduates regardless of financial need.
What might the government consider when giving a loan?
What is financial criteria, credit history and cost of attendance.
What are 2 things that compare before choosing a private student loan?
What is cosigner requirements and repayment terms.
Why can paying more than the minimum payment help?
What is reduce and lower the total interest payed.
Max receives a message that all of his student loan dept would be erased if he pays a $450 processing fee immediately. What should he do?
What is avoid paying the fee because it could potentially be a scam.