Managing Student Loan Debt Video Quiz

What is student loan debt?

• Student loan debt is the amount of money borrowed by a student to pay for their education.

• Student loan debt is the amount of money saved by a student for their education.

• Student loan debt is the amount of money given to a student as a scholarship.

• Student loan debt is the amount of money earned by a student through part-time jobs.

What are some common mistakes that lead to high student loan debt?

• Borrowing more than necessary, not fully understanding the loan terms, not exploring scholarships and grants, not making payments on time, not considering future income and job prospects.

• Not attending college, relying solely on loans for tuition, not budgeting and managing expenses, not seeking financial advice, not considering alternative education options

How can you avoid accumulating excessive student loan debt?

• To avoid accumulating excessive student loan debt, you can research affordable options, apply for scholarships, create a budget, minimize borrowing, consider alternative education paths, work part-time, stay informed about loan terms, and seek financial advice.

• To avoid accumulating excessive student loan debt, you can rely solely on credit cards for your education expenses

• To avoid accumulating excessive student loan debt, you can ignore the cost of education and borrow as much as you want

• To avoid accumulating excessive student loan debt, you can postpone repayment indefinitely

What are some strategies for managing student loan debt effectively?

• Create a budget, explore loan forgiveness programs, make extra payments, refinance, and seek financial counseling.

• Avoid making any payments on the loan

• Ignore the debt and hope it goes away

• Take out more loans to pay off existing debt

What are the consequences of defaulting on student loan payments?

• Defaulting on student loan payments can result in a small fine.

• Defaulting on student loan payments only affects your credit score.

• Defaulting on student loan payments has no consequences.

• Defaulting on student loan payments can result in damage to credit score, wage garnishment, legal action, and loss of eligibility for future financial aid or loan forgiveness programs.

What are some options for loan forgiveness or repayment assistance?

• Deferment and forbearance options

• Loan rehabilitation

• Public Service Loan Forgiveness (PSLF), Income-Driven Repayment Plans, Teacher Loan Forgiveness, and Loan Repayment Assistance Programs (LRAPs)

• Loan consolidation

How can you create a budget to manage your student loan debt?

• Follow these steps to create a budget and manage your student loan debt.

• 3. Rely on credit cards to pay off your student loan debt.

• 2. Spend all your money on unnecessary expenses and ignore the need for a budget.

• 1. Ignore your student loan debt and hope it goes away on its own.

What are some tips for finding scholarships and grants to reduce the need for student loans?

• Not paying attention to eligibility requirements

• Relying solely on personal connections for scholarship information

• Waiting until the last minute to start your search

• Some tips for finding scholarships and grants to reduce the need for student loans include starting your search early, utilizing online resources, checking with your school, researching local organizations, narrowing down your options, paying attention to deadlines, tailoring your applications, seeking guidance, being persistent, and staying organized.

What are the differences between federal and private student loans?

• Federal student loans are only available to undergraduate students.

• The main differences between federal and private student loans are the source of funding, interest rates, repayment options, and available benefits.

• Private student loans have more flexible repayment options than federal student loans.

• Federal student loans have higher interest rates than private student loans.

How can you prioritize your student loan payments to pay them off faster?

• Ignore the interest rates and pay off the loans randomly

• Make a list of all your student loans and their interest rates, focus on paying off the loan with the highest interest rate first while making minimum payments on the others, consider consolidating or refinancing your loans, and make extra payments whenever possible.

• Pay off the loan with the lowest interest rate first

• Stop making payments altogether and wait for the loans to be forgiven