Responsible Borrowing & Budgeting

A _____ is money that you borrow that needs to be paid back.

• grant

• loan

• scholarship

• fund

Income consists of:

• Take home pay

• Tips

• Alimony or child support

• All of these

Discretionary money refers to the money you have left over each month after paying your monthly obligations.

• True

• False

It is important to keep track of your credit score because:

• A good credit score means you can borrow money at lower interest rates

• A bad credit score means creditors can deny you a loan

• Neither of these

• Both of these

Having a car is an effective strategy for saving money.

• True

• False

Not repaying a student loan is OK; you can declare bankruptcy and the loan will be forgiven.

• True

• False

Forbearance includes:

• Subsidized Stafford Loans do not accrue interest

• All loans accrue interest

• Unsubsidized Stafford loans, PLUS loans, and consolidation loans, do accrue interest

• None of these

Deferment includes (select all that apply):

• Subsidized Stafford Loans do not accrue interest

• All loans accrue interest

• Unsubsidized Stafford loans, PLUS loans, and consolidation loans, do accrue interest

• None of these

Which of the following is not a repayment plan for student loans?

• Standard

• Annual

• Graduated

• Extended

Income sensitive repayment plans (select all that apply):

• Adjust annually

• Can extend for 25 years

• Can extend for 5 years

• Revert to Standard or Graduated after 5 years