Student Loans
The time in between finishing college and needing to start making minimum payments on your loan.
What is a grace period?
The act of borrowing a car rather than buying a car.
Your property can be repossessed in a mortgage because it is a form of this.
What is collateral?
If you fail to pay your debts, your loan may be sent to this place.
What is collections?
The initial amount of money you invest or take out for a loan.
What is the principal?
A federal loan that begins to accrue interest while you are still in college.
What is an unsubsidized loan?
The general term length of an auto loan.
What is 60 months?
Collateral, Principal, Interest, Taxes, and Insurance are all a part of this.
What is a mortgage?
When a portion of your income is directly taken to pay your debt.
What is wage garnishment?
The amount of money that you own that is invested into a property.
What is equity?
A type of federal loan that only guardians and graduate students can take out.
What is a Direct PLUS loan?
The difference between how much your car was worth when you purchased it and what it’s worth when you sell it.
What is Depreciation?
This mortgage has a lower fixed rate for the first 5 years, then changes based on the market.
What is an ARM (adjustable rate mortgage)?
When you pay of the loans based on their interest rate.
What is the Avalanche Method?
A loan with a longer term length will have a ______________ monthly payment.
What is "lower"?
How you apply for an federal financial aid.
What is the FAFSA?
What percent of your budget should be the max you spend on a car payment?
Less than 15% on your monthly income.
The general term length of a mortgage.
What is 30 years?
A consequence of not paying your loans, no matter the type of loan.
What is a decreased credit score?
Payments spread out over time.
What is amortization?
An additional loan you can take out if your own money and federal loans don't cover the cost of college.
What is a private student loan?
What is the guideline for knowing how much you should spend when buying a car?
Less than 50% of your annual income.
A second mortgage you take out on your home to cover other expenses.
What is a home equity loan?
Paying of your loans based on the cost of the loan.
What is the snowball method?
You invest $5,000 in a bank for 2 years at a 3% interest rate. This is the interest that you earned.