PF: Chapter 7 Lesson 3 Consider the Cost

What is the main focus of The Fourth Foundation?

• Dropping out of college

• Taking out student loans

• Delaying life goals

• Paying cash for college

Why are student loans often considered 'good debt'?

• They are based on financial need

• They are easy to repay

• They have low interest rates

• They help build credit score

What percentage of college graduates have student loan debt?

• 100%

• 25%

• 49%

• 75%

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

• $35,000

• $100,000

• $50,000

• $10,000

What is the main disadvantage of unsubsidized student loans?

• They have high interest rates

• They require financial need

• They have deferred interest

• They are difficult to obtain

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

• 30 years

• 10 years

• 20 years

• 5 years

What is the opportunity cost of having large student loan debt?

• Pursuing other life goals

• Increasing credit score

• Earning a higher starting salary

• Delaying major life events

What is the average amount of student loan debt for college dropouts?

• $100,000

• $20,000

• $7,000

• $50,000

What percentage of college dropouts owe more on their student loans than they originally borrowed?

• 25%

• 49%

• 75%

• 100%

Why are student loans often considered 'stealing from your future'?

• They require financial need

• They are difficult to obtain

• They have a high true cost

• They have low interest rates