Question

unit three study guide
what is the difference between a credit card and a debit card? which is linked to your checking account? which is linked to your credit score? which can you dispute fraudulent charges?
paying for education
financial aid is divided into what three main categories?- explain them
what type of student loan is not based on credit history and usually has fixed interest rates and fees?
define \forbearance\ (as it applies to student loans):
define \default\ as it applies to student loans
list the ways that will help you owe less (take out loans for a lesser amount) for your student loans

Explanation:

1. Credit card vs debit card: A credit card is a line of credit allowing borrowing up to a limit, linked to credit - score. A debit card is linked to checking account, deducting funds directly. Fraudulent charges can be disputed on both, but process may vary.
2. Financial aid categories: Grants are gifts (e.g., Pell Grant), scholarships are merit - based, and loans must be repaid (e.g., Stafford loans).
3. Student loan type: Federal subsidized student loans are not based on credit history, with fixed rates and sometimes fees waived.
4. Forbearance: A temporary pause or reduction in student loan payments, usually for financial hardship.
5. Default: Failure to make student loan payments as scheduled for an extended period, with negative credit consequences.
6. Ways to owe less: Apply for scholarships and grants, work part - time while studying, live frugally to reduce need for loans.

Answer:

1. A credit card is a line of credit linked to credit - score, allowing borrowing up to a limit. A debit card is linked to checking account, deducting funds directly. Fraud can be disputed on both.
2. Grants (gifts), scholarships (merit - based), loans (must be repaid).
3. Federal subsidized student loans.
4. A temporary pause or reduction in student loan payments for financial hardship.
5. Failure to make student loan payments as scheduled for an extended period.
6. Apply for scholarships and grants, work part - time, live frugally.