ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They have a guaranteed, fixed rate that the borrower knows before taking out the loan
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They are erased if you ever have to file for bankruptcy
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They are sometimes eligible for loan forgiveness, income-based repayment, or deferment
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They are not subject to a credit check in order to qualify
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Detailed explanation-1: -No matter which form of bankruptcy is sought, not all debt can be wiped out through a bankruptcy case. Taxes, spousal support, child support, alimony, and government-funded or backed student loans are some types of debt you will not be able to discharge in bankruptcy.
Detailed explanation-2: -Con: Student Loans Can Penalize You for Late Payments Missing payments on student loans will result in penalties. Some of these penalties include added interest, higher fees, or even wage garnishment. As mentioned above, this also affects your credit score, having a rippling effect on big purchases you plan to make.
Detailed explanation-3: -Yes. Before your loans are consolidated, your consolidation loan servicer will send you a notice containing the deadline by which you must notify the servicer if you want to cancel your application. Contact your consolidation loan servicer for more information.
Detailed explanation-4: -Filing for bankruptcy can hurt an individual’s credit, and the impact can last for years. A Chapter 7 bankruptcy may stay on credit reports for 10 years from the filing date, while a Chapter 13 bankruptcy generally remains for seven years from the filing date.