Gorilla Gateway Final Review 2023

Which of the following would be considered a "need"?

• food

• a new pair of shoes to go with my new outfit

• music

• a college degree

What is it called when the federal government will pay the interest on a student loan while the student is in school and for six months after they graduate? 

• parent-plus loan

• unsubsidized loan

• subsidized loan

• private loan

What is a temporary suspension of loan payments for specific situations called?  

• subsidized

• deferment

• forbearance

• default

Student loans are free money and you will NOT be required to pay them back with interest.

• True

• False

In this type of loan the government DOES NOT pay the interest. You are responsible for all interest for the entire life of the loan. Even if you are not in repayment, the interest still accrues. 

• unsubsidized loan

• subsidized loan

• parent-plus loan

• private loan

What is a temporary postponement or reduction of payments when you are experiencing financial difficulty called?

• deferment

• default

• forbearance

• subsidized

Student loan debt doesn’t go away if you avoid making your payments. There are serious consequences you could face. What could happen if you default on your student loans? There are multiple correct answers.

• Your federal and state income tax refunds can be withheld.

• Your wages can be garnished.

• Legal action could potentially be taken.

• Student loans, like other lines of credit, effect your credit report. Being in default could prevent you from obtaining other types of consumer credit, such as a home loan.

• Nothing bad can happen, the debt eventually is just forgiven.

You understand the steps of a cost–benefit analysis as it pertains to large decision making.

• No freaking clue

• If I looked at the powerpoint, I'd know.

• I feel like I could get two of the four right.

• <<< there are actually six idiot. But I only know like three of them.

• I know them all!

The better your credit, the lower your interest rate.

• True

• False

Which of the following are reasons to avoid payday loans? (there are multiple correct answers)

• Using your next paycheck to cover the loan may make you unable to cover your normal purchases.

• Cost of financing is outrageous making them difficult to pay off.

• Typically costs several hundred percent a year (at least 400%)!

• There are no reasons to avoid payday loans. They are great!