Everfi Modules 5-7 Study Guide – Flashcards
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What is the name of the form that you file to receive federal financial aid for school?
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FASFA
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The government will pay the interest on which type of student loan (for 6 months after you graduate)?
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Subsidized Loan
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What type of interest rate do federal student loans have?
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Fixed
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What is the grace period on student loans?
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The period after graduating before you start paying loans
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Your decision to buy or rent a home should be based on what factors?
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Price range
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What are the responsibilities of a renter versus an owner?
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Not in charge of repairs, renter has few responsibilities
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What factors should you take into consideration when deciding to buy a car?
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The cost, down payment
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What form does your employer send you before you file your tax return?
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W-2
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What is an insurance premium? A co-pay?
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1. Insurance Premium- amount you pay for coverage 2. Co-Pay- fixed fee you pay for covered medical insurance
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What is the usual deadline to file your taxes?
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April 15, 20--
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What type of driver has the highest auto insurance premiums?
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Young, inexperienced
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Who gets the highest return on investment (ROI) from their education? Why?
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Someone with a bachelor's degree, because they get more money
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Which loans offer the lowest interest rates for students?
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Federal Student Loans
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Who pays the interest on an subsidized federal loan while the student is in college?
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Government
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What tool allows you to transfer your tax information into your FAFSA?
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Data retrieval tool
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Do any types of student loans require you to make loan payments while in school?
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Unsubsidized
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Is the interest rate on student loans fixed or adjustable?
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Fixed
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What aid can you apply for using the FAFSA form?
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Federal Student Grants and Aids, Federal work program
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How can you submit the FAFSA form?
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Online or mail it in
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What report do you receive back after submitting the FAFSA form?
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Student Aid Report
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On average, how much more do holders of Bachelor's degrees make over those who have a high school diploma?
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1.6%
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Which types of student aid do not require you to pay back the money you receive? Which do you have to pay back?
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Grants, scholarship, federal aid Loans
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How do renting and owning compare in flexibility and long-term costs?
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Being a renter your are more flexible and owning is more expensive in the beginning
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Who has more responsibility and control between a renter and an owner?
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Owner
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In terms of property value- What is appreciation? Depreciation?
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Something you own that increases in value over time Something that you own that decreases in value over time
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Between homes and cars, which usually appreciates over time, and which usually depreciates over time?
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Homes appreciate, cars depreciate
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What is outline in a lease agreement?
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a rental agreement. It lays out the terms for the property you'd like to rent
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What are the benefits of buying a home instead of renting?
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You've got control, houses appreciate
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How do the following affect the size of your monthly mortgage payment: down payment, term of loan, and interest rate. Which combination of those factors will lead to the lowest mortgage payment?
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Down Payment- the larger the down payment the lower the interest rate and more likely you'll be approved Term of Loan- How long you pay determines how much you'll pay each month Interest rates- Depending on your interest rate, tells you how much extra you'll have to pay
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What is your best option if you can't afford the rent in the area you want to live?
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Get a roommate
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When trying to move from renting to buying, should you break your lease to buy a house, or wait until the end of your lease to purchase a home?
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Wait
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What is a mortgage?
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Type of loan to buy property
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When looking for a car that you will use long term, should you have a down payment? Should you lease or buy a vehicle?
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Yes you should put down a down payment and buy it
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Is renter's insurance included in most rental agreements?
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yes
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What are the benefits of owning vs leasing a car?
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control of payment, its your car
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What is the biggest factor in determining the total price of a mortgage?
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Cost of home
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How does insurance help you?
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Financially protects you against unexpected accidents
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What is typically covered by homeowner's insurance? Renter's insurance?
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Can protect you from paying damages in case of fire, etc.
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What is the monthly payment on your insurance policy called?
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Premium
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What is your insurance deductible?
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The amount you must pay out-of-pocket to your claim before insurance kicks in
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What type of insurance plan will require you to pay out the least if you are at fault in a car accident?
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Low deductible
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When you sell a house, what type of taxes do you pay?
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Capital Gains Tax
