Pathways: Financing Higher Education™ Repaying Loans Responsibly

Which is an example of income-driven repayment plan for student loans?

• Payments are the same every month for 10 years.

• Payments start lower and increase every 2 years.

• Payments are low and can last up to 25 years.

• Payment amounts are based on a percentage of what you earn.

Which is an example of an extended repayment plan for student loans?

• Payment amounts are based on a percentage of what you earn.

• Payments are low and can last up to 25 years.

• Payments start lower and increase every 2 years.

• Payment amounts are based on a percentage of your income.

Which is an example of a graduated repayment plan for student loans?

• Payments start lower and increase every 2 years.

• Payments are the same every month for 10 years.

• Payment amounts are based on a percentage of what you earn.

• Payments are low and can last up to 25 years.

If Emmett wants to pay off his student loan by making monthly payments for 10 years, what type of repayment plan is best for him?

• Standard repayment plan

• Extended repayment plan

• Graduated repayment plan

• Income-driven repayment plan

If Gabi wants to pay off her student loan by starting with a low amount and then increasing it every two years, what type of repayment plan is best for her?

• Standard repayment plan

• Extended repayment plan

• Graduated repayment plan

• Income-driven repayment plan

If Alejandro wants to pay off his student loan by basing it on how much he is earning at his job after graduation, what type of repayment plan is best for him?

• Standard repayment plan

• Extended repayment plan

• Graduated repayment plan

• Income-driven repayment plan

High student loan payments can impact all of the following life decisions except _____.

• being able to afford food

• getting married and having children

• buying a car

• buying a house

Which of the following is an example of how high student loan debt can impact a person's life decisions?

• High student loan debt can be used as collateral and improve a person's chance at buying a car.

• A person may choose to buy a house instead of renting an apartment since they can afford a large down payment.

• High student loan debt can make it easier to borrow more and continue studies in graduate school.

• A person may choose to use public transportation instead of buying a car since they can't afford a down payment.

Which of the following is an example of how high student loan debt can impact a person's life decisions?

• High student loan debt can make it easier to borrow more and continue studies in graduate school.

• A person may choose to rent instead of buying a home since they can't afford a down payment.

• A person may choose to buy a car instead of leasing since they can afford a large down payment.

• High student loan debt can be used as collateral and improve a person's chance at buying a house.

Having a high debt-to-income ratio or defaulting on your loan can bring down your credit score. How can a low credit score on your credit report affect you?

• It can make it easier to get new credit cards.

• It can make it much harder to borrow money in the future.

• It can make it harder to be accepted into graduate schools.

• It can make it much easier to borrow money in the future.