Chapter 7 Lesson 3 Consider the Cost

What is the Fourth Foundation mentioned in the text?

• Take out student loans for college.

• Pay cash for college.

• Apply for scholarships.

• Work part-time during college.

According to the text, what percentage of college graduates have student loan debt?

• 25%

• 49%

• 60%

• 75%

What is a common misconception about student loans mentioned in the text?

• They are easy to repay.

• They are a form of savings account.

• They are considered "good debt."

• They are only for low-income students.

What is the average amount of student loan debt for a college graduate in America?

• $20,000

• $25,000

• $35,000

• $50,000

What is the opportunity cost of having large student loans, as mentioned in the text?

• Delaying major life events like marriage and buying a house.

• Having a higher credit score.

• Getting a better job immediately after graduation.

• Traveling more during college.

What is the difference between subsidized and unsubsidized federal student loans?

• Subsidized loans have higher interest rates.

• Unsubsidized loans require financial need.

• Subsidized loans defer interest until after graduation.

• Unsubsidized loans are only for graduate students.

What percentage of a graduate's take-home pay can student loan payments take up?

• 10%

• 15%

• 20%

• 25%

How long does it take the average graduate to pay back their student loans?

• 5 years

• 10 years

• 15 years

• 20 years

What is the average student loan debt for college dropouts?

• $3,000

• $5,000

• $7,000

• $10,000

Why are student loans difficult to escape through bankruptcy?

• They are considered a form of secured debt.

• They are often not dischargeable in bankruptcy.

• They are forgiven after a certain period.

• They are automatically paid off by the government.