Question

Consider the following scenario:

Your good friend Kyle would like to go back to school to complete a bachelor’s degree in Early Childhood Education so that he can fulfill his dreams of teaching 2nd grade. Years ago, he started college, but work and life responsibilities got in the way of him finishing. He knows that you recently enrolled at Ashford University and wants to ask your advice as he plans his next move. In order to help pay for his tuition, he plans to borrow student loans. Kyle tells you that he wants to borrow the maximum amount of available loan money to buy his kids new shoes and go on a vacation to Hawaii.

Based on the scenario above, address the following:

• Identify at least two pieces of useful information about student loans that Kyle should know to ensure he borrows responsibly. Review the Student Aid. Website for suggestions.

Answer 1

Since Kyle college education to complete has 1 more year and to pay his tuition fees he decides to take a loan. But here is the caveat where his purpose of borrowing ois different from the aloocation made after receiving the loan amount. 2 pieces of information that he should be aware of are as follows-

Determine how much you should borrow - This include factors like in which city you plan to underatke your education, the cost of living, the amount of tuition fees, the amount of financial assistance from the University, your future borrowing needs.

Repayment structure- How will you like to payback the installments: monthly, yearly, semi annualy or quaterly