Dave Ramsey Life After High School Flashcard

Front

What is a potential negative consequence of taking out student loans?

Back

Accumulating debt that may be difficult to repay, affecting credit scores and financial stability.

Front

Define debt in the context of personal finance.

Back

Debt is owing anything to anyone for any reason, which can include loans, credit card balances, and other financial obligations.

Front

Does bankruptcy erase student loan debt?

Back

No, bankruptcy does not typically erase student loan debt.

Front

How does our culture view student loan debt?

Back

Our culture often views student loan debt as normal and an acceptable way to finance college education.

Front

What does 'pay as you go' mean in financial terms?

Back

'Pay as you go' refers to using cash-flow to pay for expenses as they arise, rather than relying on credit or loans.

Front

What are some common types of student loans?

Back

Federal loans, private loans, subsidized loans, and unsubsidized loans.

Front

What is the difference between subsidized and unsubsidized student loans?

Back

Subsidized loans do not accrue interest while the borrower is in school, while unsubsidized loans do.

Front

What is the impact of high student loan debt on graduates?

Back

High student loan debt can limit graduates' ability to buy homes, save for retirement, and pursue other financial goals.

Front

What is a credit score and why is it important?

Back

A credit score is a numerical representation of a person's creditworthiness, important for securing loans and favorable interest rates.

Front

What are some strategies to manage student loan debt effectively?

Back

Strategies include budgeting, making extra payments, exploring loan forgiveness programs, and consolidating loans.