Personal Finance Unit Three Review 3.04-3.07

Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans. She decides to attend a 2-year program in to become a veterinary technician, and then work for 3 years in that field while she saves money for her remaining 2 years of college and veterinary school. Mallory’s plan is known as a/an: 

• Career Pathway
• Opportunity Cost
• Debit-to-Income Ratio
• SMART goal

It is recommended that your educational loan payments require no more than 10-15% of your estimated starting income. To calculate this amount, students need to calculate the __________of their education and training. 

• Opportunity Cost
• Career Pathway
• Benefit 
• Debt-to-Income Ratio

As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the LEAST IMPORTANT one to consider at this point?

• What kind of training and education do I need and how much will it cost?
•  Is there a career pathway available if I continue my education and training?
• Can I get the education and training I need near where I currently live?
•  Will a job be available and will I earn enough in my career to pay for the education and training it requires?

The ________ of continuing your education is the money you would have earned if you have worked instead.

• Debt-to-income ratio 
• Opportunity cost 
• Benefit 
• total estimated cost 

Direct Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college. Which of the following is NOT difference between of a Direct Subsidized Stafford Loan and a typical bank loan? 

• Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time.
• Stafford Loans have deferment options.
• Stafford Loans typically have a grace period.
• Student families must complete a FAFSA (Free Application For Federal Student Aid) in order to apply for a Stafford Loan.

Carson’s family has always struggled financially due to his parents’ leaving high school before graduating and working lower paying jobs to support the family. His parents don’t want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which typed of need-based aid he will qualify for?

• Perkins Federal Loan Application
• Direct Subsidized Stafford Loan Application
• Federal Work Study Application 
• Free Application for Federal Student Aid (FAFSA)

Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he want to explore ways he can receive money he WON’T need to repay. Which set of options below should he explore? 

• Federal Perkins Loans, PLUS and local bank loans
• Federal Student Grants, PLUS Loans, and scholarships
• Pell Grants, Work-study, and scholarships
• Work-study, scholarships and PLUS Loans

Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?

• He could be denied credit cards, car or home loans, or apartment leases.
• The bank could refuse to allow him to open a checking account.
• He may not be able to obtain a marriage license.
• His wages may be garnished.

Sarah learned in her Financial Education class that she needs to consider the Cost of Living when comparing job offers. Which statement is most accurate? 

• How much she will spend in moving expenses to re-locate to the city where her new job is.
• The average cost of basic necessities, such as housing and food in the city where her new job is.
• The total value of the benefits package she will be offered in her new job.
• The total amount of her college costs compared to the salary she is being offered in her new job.

Steven is considering taking a job with a company that is offering gym memberships, flexible hours, repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called

• Employee Benefits
• Job Perks 
• Work Incentives 
• Competitive Hiring Practices