Loans Review

Interest can be defined as:

• a charge for lending money

• the amount owed for borrowing money

• the amount added into your savings account when opening a bank account

• a charge for convenience of accessing money in your bank

Tags

CCSS.7.RP.A.3

An APR of 25.99% in decimal form is....

• .02599

• .2599

• 2.599

• 25.99

APR stands for

• annual profit rate

• annual percentage rate

• annual participation rate

• annuity profit range

Tags

CCSS.7.RP.A.3

An APR of 5.4% in decimal form is....

• .54

• .054

• 5.4

• .0054

Select all of the following agencies which are "Credit Reporting Agencies"

• Equifax

• Trans-union

• Geico

• Progressive

What is a Grace Period?

• A period where you don't have to pay interest

• A period where if you pay, then you don't have to pay interest

• A period where the Bank will give you extra time to pay off what you owe

• A period where interest is accumulating but you don't have to pay it

In order to qualify for Federal student loans…

• You must have financial need
• You must file the FAFSA
• You must complete a separate application for federal loans
• You must take out a private loan

Which of the following statements is TRUE about the advantages of federal student loans compared to private student loans?

• Federal student loans generally offer higher interest rates which remain fixed over the term of the loan
• Federal student loans do not need to be repaid if the borrower runs into financial difficulty and goes bankrupt
• Federal student loans require a credit check
• Federal student loans offer more flexible repayment terms

A subsidized loan is when ____________________ pays the interest while you are in school, while an unsubsidized loan is when ___________________ pays the interest while you are in school.

• the government; parents
• the borrower; parents
• the borrower; the government
• the government; the borrower

Which federal loans are available for parents to take out for their children's education?

• Perkins Loans
• Direct PLUS Loans
• Subsidized Direct Loans
• Unsubsidized Direct Loans