Unit 3 Review

During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues…

• Grace period
• Grants and scholarships
• FAFSA
• Forbearance

In order to qualify for financial aid, which application must you submit?

• FAFSA
• PLUS
• SAVE
• SAI

The federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.

• Work-Study
• Subsidized federal loans
• Unsubsidized federal loans
• Grants

Who is eligible to receive Direct Subsidized loans?

• Graduate students
• Professional students
• Undergraduate students
• Students enrolled less than half-time

Which repayment option does not accrue interest while your required payments are paused?

• Consolidation
• Deferment
• Refinancing
• Forbearance

Means that all of an individual’s student loans are combined into one large loan, resulting in a lower monthly payment.

• Consolidation
• Deferment
• Refinancing
• Forbearance

If trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true?

• All 3 cards are completely different

• Debit cards and prepaid debit cards are the same

• Debit cards and credit cards are the same

• All 3 cards are completely the same

All of the following are most likely to represent a fixed rate, unsecured debt except:

• Student Loan

• Credit Card

• Store Card

• Mortage Loan

Luke has a credit card with a $1500 credit limit. His outstanding balance is currently $800. What is the maximum amount he can now spend on this credit card?

• 200

• 600

• 700

• 400

The annual interest rate is 12%. The borrower paid a total of $850 in interest and repaid the loan in 24 months. What was the principal?

Use the formula:

Principal= Interest/(Rate x Time)

• $6500

• $2000

• $1500

• $3500