Understanding Student Loans and Financial Literacy

What is the primary focus of the Cash Course series?

• Art history

• Travel tips

• Financial literacy

• Cooking techniques

Which type of student loan is funded by private banks?

• Federal student loans

• Private student loans

• Subsidized loans

• Unsubsidized loans

What is a key benefit of federal student loans over private loans?

• No need for repayment

• Available only to graduates

• Higher interest rates

• More repayment options

What is the main difference between subsidized and unsubsidized loans?

• Subsidized loans have no interest

• Unsubsidized loans are only for graduates

• Subsidized loans have interest paid by the government while in school

• Unsubsidized loans are interest-free

Why is it important to be cautious about the amount you borrow in student loans?

• Interest rates are always low

• Loans are free money

• You never have to repay them

• It can affect your future financial stability

What is a significant consequence of student loans on future borrowing?

• They improve your credit score

• They reduce your debt-to-income ratio

• They are forgiven after graduation

• They can make it harder to borrow for a car or house

What should you consider before taking out a student loan?

• The color of your graduation gown

• The location of your college

• The interest rate and repayment terms

• The number of friends attending the same college

What is FAFSA used for?

• Registering for classes

• Applying for federal student aid

• Filing taxes

• Applying for scholarships

What can you do if you're having trouble making student loan payments?

• Take out more loans

• Transfer to another college

• Contact your loan provider for deferment or forbearance

• Ignore the payments

Why is it important to keep track of all paperwork related to your student loans?

• To ensure you know how much you owe

• To decorate your room

• To share with friends

• To sell them later