7.4 Notes

7.4 Notes

By Griselda Arce

• IN THIS LESSON, YOU WILL:

  ● Calculate the future value of a periodic investment

  ● Analyze exponential growth rate using a real-world scenario about loan repayment and investment returns.

  ● Consider strategies to minimize student loan debt

  ● Understand the different loan repayment options available

  ● Analyze sample graduate

​ARTICLE: Choosing a Loan That’s Right for You

Let's review some of the information about Student Loans. We discussed this information in Unit 9.

Multiple Choice

1. Which student loan does NOT charge you interest while you’re in school as an undergraduate?

• Direct Subsidized

• Direct Unsubsidized

• Direct Plus

• Private

​2. What is the first step the article identifies for getting a federal student loan?

Complete and submit your Free Application for Federal Student Aid (FAFSA)

Multiple Select

If you need to get a private student loan, what steps does the article recommend?

• Consult your school’s fi nancial aid offi ce

• Find a co-signer

• Shop around for the lowest interest rate and most fl exible repayment options

• Don’t use a credit card to pay for education

VIDEO: How to Prep for Student Loan Repayment

INFOGRAPHIC: Repayment Plan Options

What happens when it's time to repay your student loans? After graduation, you’ll have a number of federal student loan repayment plans to choose from, based on your financial situation. Watch this video and study the infographic to learn when and how you can expect to repay your federal student loans. Remember - private loans will have their own terms and repayment options.

Multiple Choice

1. When do you have to start repaying your loan if you have a federal direct subsidized loan or a federal direct unsubsidized loan?

• once you open the loan

• 6 months after you graduate, stop going to school, or fall below half time enrollment

Multiple Choice

2. What does a loan servicer do?

• Manages loans and collects payments on behalf of a lender

• Sends your money to the DOE

Multiple Select

3. What are some reasons someone might switch from the standard repayment plan to a graduated, extended, or income-based plan? (Pick 3)

• You want your payment to be tied to your income to help manage your debt (income-based)

• 
  If you expect that your income will increase over time (graduated)

• You may need a longer amount of time to pay back your loan (extended)

• You need to but a car and do not want to pay off your student loans

Desmos Activity
​
1. Go to https://student.desmos.com/
2. Log in to our class by clicking the red box.
If you set up your account with a different email, click the Log in with Desmos button.
3. Then, Complete the Future Value of a Periodic Investment
(Financial Algebra 7.4)


Once you complete the Desmos Activity, go to Schoology and complete 7.4 Activity: Compare: Which Repayment Option is Best?