Managing Student Loans and Financial Strategies

What is one of the unique aspects of student loans compared to other types of loans?

• They have no interest rates.

• They are discharged in bankruptcy.

• They can be used for any purpose.

• They are discharged only in the event of death or total disability.

Why are federal loans generally preferred over private loans?

• They are easier to obtain.

• They offer income-based repayment and forgiveness plans.

• They have higher interest rates.

• They require a cosigner.

What is a recommended strategy for minimizing student loan burden during college?

• Avoiding work-study programs.

• Attending the most prestigious private institution.

• Maximizing the use of private loans.

• Choosing an affordable public university.

How can students reduce their living expenses while in college?

• Living alone in a luxury apartment.

• Buying new textbooks every semester.

• Upgrading to the latest tech annually.

• Cooking meals at home.

What is a financial strategy for attending medical school in a high-cost city?

• Taking out maximum private loans.

• Avoiding scholarships.

• Applying to tuition-free medical schools.

• Living in a luxury apartment.

What is a benefit of university loans for medical students?

• They often have better terms than other loans.

• They are generally not subsidized.

• They require no repayment.

• They are always interest-free.

What should be considered when choosing a medical specialty in relation to student debt?

• The potential income versus debt burden.

• The location of the practice.

• The length of the residency program.

• The prestige of the specialty.

What is a key feature of income-driven repayment programs?

• They have fixed monthly payments.

• They are based on the borrower's income and family size.

• They are based on the loan amount.

• They offer immediate loan forgiveness.

What is a potential downside of the Public Service Loan Forgiveness program?

• It requires part-time employment.

• It has a high rejection rate.

• It offers taxable loan forgiveness.

• It is only available to private sector employees.

What is a recommended strategy for paying off student loans faster after residency?

• Taking out new loans to pay off old ones.

• Living like a resident to avoid lifestyle inflation.

• Spending more on luxury items.

• Ignoring interest rates.