DATS Final Exam: DAT Exam Study Guide: DAT 102 Final
Exam: DATS Mid Term Exam Review: Questions &
Answers:
When taking out a student loan to pay for your education, the most important
consideration is to make sure: - ANSWERmake sure you are borrowing only the
amount you need.
Your rights as a student loan borrower include which of the following? - ANSWERthe
right to receive a copy of your Master Promissory Note, prepay all or part of your
loan without penalty and defer payments for specified periods, if you qualify.
True or False: Paying the interest on your student loans that are accruing interest
while you are in school can significantly reduce your loan costs. - ANSWERTrue
Which of the following are federal student loan repayment options? -
ANSWERStandard, Graduated and Income-Based Repayment are all federal student
loan repayment options. Other options include Extended, Income-Contingent and
Pay As You Earn Repayment.
True or False: If you have serious financial troubles, bankruptcy will relieve you of
your federal student loan obligation. - ANSWERBankruptcy does not relieve you of
your federal student loan obligation.
When deciding how much he can afford to borrow in student loans, Cody should
consider what his monthly income will be when he graduates. Cody expects to make
about $2,000 a month in his chosen occupation.
Based on the recommended guidelines, what is the maximum monthly student loan
payment that Cody will be able to afford? - ANSWERExperts recommend that
student loan payments do not exceed 10 percent of a borrower's monthly income
Hannah has a Direct Subsidized Loan balance of $21,470. Based on the information
in this table, what is a negative implication if Hannah selects the Graduated
Repayment Plan instead of the Standard Repayment Plan? - ANSWERShe will pay
more interest on a graduated loan
Based on the information presented in the chart above, which of the following are
advantages of the Standard Repayment plan versus the other available repayment
plans? Check ALL that apply: - ANSWEROn Standard Repayment plan, borrowers
typically will pay less interest, making their total amount paid less than the other
available repayment options.
What is the name of the central database for federal student aid? - ANSWERThe
central database for federal student aid is the National Student Loan Data System, or
NSLDS.
,Which student loan repayment option typically has the lowest cost over the life of
the loan? - ANSWERStandard Repayment offers fixed payments over 10 years, and
offers the lowest interest costs of any of the repayment options.
What are goals? - ANSWERDesires and plans to achieve a specific outcome.
Which of the following is an example of a SMART goal? - ANSWERI will study at the
library three hours per class, each week, during the upcoming term.
What are needs? - ANSWERThings for your everyday living and goal attainment.
Which of the following is an example of a need? - ANSWERFood
What are wants? - ANSWERThings that are nice to have and gratify some desire or
urge.
Which of the following is an example of a want? - ANSWERVideo games.
When Elaine entered college as a freshman, she met with her academic adviser to
establish her school and career goals. Elaine continued to meet with her adviser each
semester to ensure she was enrolled in the appropriate classes. Her adviser also
helped her focus on action steps to meet her goals. Because of her hard work, Elaine
graduated in four years. What did Elaine do right? - ANSWERElaine regularly met
with her academic adviser, set school and career goals, focused on action steps to
meet her goals, and took the classes that she needed in order to graduate in four
years.
Jason is unhappy with his math class grades and realizes that he needs to study
more. What steps would be helpful for him to take? - ANSWERJason should take
action steps, including scheduling time each day to study, meeting with a study
group and finding a tutor, in order to meet his goal of studying more and raising his
grade.
Michael wants to upgrade his phone, even though his current phone is only a year
old. You know Michael has been neglecting some of his monthly debt payments
because he is unable to afford them. In fact, he borrowed money from you last
month to make his rent payment.
How would you advise Michael regarding purchase of a new phone? -
ANSWERBecause Michael is having trouble meeting his financial obligations, you
should suggest that he not purchase a new phone until he can truly afford it.
Dianne just started her new job and noticed most of her co-workers dress
conservatively. Having just graduated college, most of her wardrobe is casual. You
know that Dianne has a tight budget.
, How would you advise Dianne regarding her work wardrobe? - ANSWERDianne
should shop the sales rack or at second-hand clothing stores, buying only enough
clothes for a work week.
A good first step to ensure that you have enough money to meet expenses each
month is to: - ANSWERYou should first identify the sources and amounts of money
you have to spend each month.
True or False: The best way to stay out of debt is to prepare a personal budget. -
ANSWERTrue.
Which of the following is a money-saving strategy? - ANSWERRenting a DVD from a
kiosk is much less expensive than going to the theater. Purchasing a health club
membership, going to the mall and driving your car on campus are all unnecessary
expenses.
True or False: When researching potential starting salaries, a new graduate should
expect to earn around the 50th percentile of a job's projected income. -
ANSWERFalse; When trying to estimate your potential earnings after graduation, it is
important to look at entry-level salaries, which are usually around the 10th
percentile.
Based on your review of his budget, what would be the BEST advice for Michael in
order to reduce his expenses? - ANSWERPurchasing a subscription to stream movies
while reducing entertainment and food expenses will help Michael reduce his
expenses.
Which of the following is the term that describes the total amount of money you
actually take home after all of the required withholdings and taxes have been
subtracted from your pay? - ANSWERNet income.
Which of the following represents the total amount of money that you earn from
your job or other sources of income? - ANSWERGross income.
True or False: Your employer is not allowed to withhold money for FICA from your
paycheck without your permission. - ANSWERYour employer is required to withhold
money for FICA from your paycheck.
Which of the following are examples of items that can be withheld from your
paycheck? - ANSWERunion dues, insurance premiums and contributions to savings
or retirement plans.
A good guideline to follow is that your student loan payments should not exceed
what percent of your gross monthly income? - ANSWERGenerally, your student loan
payments should not exceed 8 to 10 percent of your gross monthly income.
Exam: DATS Mid Term Exam Review: Questions &
Answers:
When taking out a student loan to pay for your education, the most important
consideration is to make sure: - ANSWERmake sure you are borrowing only the
amount you need.
Your rights as a student loan borrower include which of the following? - ANSWERthe
right to receive a copy of your Master Promissory Note, prepay all or part of your
loan without penalty and defer payments for specified periods, if you qualify.
True or False: Paying the interest on your student loans that are accruing interest
while you are in school can significantly reduce your loan costs. - ANSWERTrue
Which of the following are federal student loan repayment options? -
ANSWERStandard, Graduated and Income-Based Repayment are all federal student
loan repayment options. Other options include Extended, Income-Contingent and
Pay As You Earn Repayment.
True or False: If you have serious financial troubles, bankruptcy will relieve you of
your federal student loan obligation. - ANSWERBankruptcy does not relieve you of
your federal student loan obligation.
When deciding how much he can afford to borrow in student loans, Cody should
consider what his monthly income will be when he graduates. Cody expects to make
about $2,000 a month in his chosen occupation.
Based on the recommended guidelines, what is the maximum monthly student loan
payment that Cody will be able to afford? - ANSWERExperts recommend that
student loan payments do not exceed 10 percent of a borrower's monthly income
Hannah has a Direct Subsidized Loan balance of $21,470. Based on the information
in this table, what is a negative implication if Hannah selects the Graduated
Repayment Plan instead of the Standard Repayment Plan? - ANSWERShe will pay
more interest on a graduated loan
Based on the information presented in the chart above, which of the following are
advantages of the Standard Repayment plan versus the other available repayment
plans? Check ALL that apply: - ANSWEROn Standard Repayment plan, borrowers
typically will pay less interest, making their total amount paid less than the other
available repayment options.
What is the name of the central database for federal student aid? - ANSWERThe
central database for federal student aid is the National Student Loan Data System, or
NSLDS.
,Which student loan repayment option typically has the lowest cost over the life of
the loan? - ANSWERStandard Repayment offers fixed payments over 10 years, and
offers the lowest interest costs of any of the repayment options.
What are goals? - ANSWERDesires and plans to achieve a specific outcome.
Which of the following is an example of a SMART goal? - ANSWERI will study at the
library three hours per class, each week, during the upcoming term.
What are needs? - ANSWERThings for your everyday living and goal attainment.
Which of the following is an example of a need? - ANSWERFood
What are wants? - ANSWERThings that are nice to have and gratify some desire or
urge.
Which of the following is an example of a want? - ANSWERVideo games.
When Elaine entered college as a freshman, she met with her academic adviser to
establish her school and career goals. Elaine continued to meet with her adviser each
semester to ensure she was enrolled in the appropriate classes. Her adviser also
helped her focus on action steps to meet her goals. Because of her hard work, Elaine
graduated in four years. What did Elaine do right? - ANSWERElaine regularly met
with her academic adviser, set school and career goals, focused on action steps to
meet her goals, and took the classes that she needed in order to graduate in four
years.
Jason is unhappy with his math class grades and realizes that he needs to study
more. What steps would be helpful for him to take? - ANSWERJason should take
action steps, including scheduling time each day to study, meeting with a study
group and finding a tutor, in order to meet his goal of studying more and raising his
grade.
Michael wants to upgrade his phone, even though his current phone is only a year
old. You know Michael has been neglecting some of his monthly debt payments
because he is unable to afford them. In fact, he borrowed money from you last
month to make his rent payment.
How would you advise Michael regarding purchase of a new phone? -
ANSWERBecause Michael is having trouble meeting his financial obligations, you
should suggest that he not purchase a new phone until he can truly afford it.
Dianne just started her new job and noticed most of her co-workers dress
conservatively. Having just graduated college, most of her wardrobe is casual. You
know that Dianne has a tight budget.
, How would you advise Dianne regarding her work wardrobe? - ANSWERDianne
should shop the sales rack or at second-hand clothing stores, buying only enough
clothes for a work week.
A good first step to ensure that you have enough money to meet expenses each
month is to: - ANSWERYou should first identify the sources and amounts of money
you have to spend each month.
True or False: The best way to stay out of debt is to prepare a personal budget. -
ANSWERTrue.
Which of the following is a money-saving strategy? - ANSWERRenting a DVD from a
kiosk is much less expensive than going to the theater. Purchasing a health club
membership, going to the mall and driving your car on campus are all unnecessary
expenses.
True or False: When researching potential starting salaries, a new graduate should
expect to earn around the 50th percentile of a job's projected income. -
ANSWERFalse; When trying to estimate your potential earnings after graduation, it is
important to look at entry-level salaries, which are usually around the 10th
percentile.
Based on your review of his budget, what would be the BEST advice for Michael in
order to reduce his expenses? - ANSWERPurchasing a subscription to stream movies
while reducing entertainment and food expenses will help Michael reduce his
expenses.
Which of the following is the term that describes the total amount of money you
actually take home after all of the required withholdings and taxes have been
subtracted from your pay? - ANSWERNet income.
Which of the following represents the total amount of money that you earn from
your job or other sources of income? - ANSWERGross income.
True or False: Your employer is not allowed to withhold money for FICA from your
paycheck without your permission. - ANSWERYour employer is required to withhold
money for FICA from your paycheck.
Which of the following are examples of items that can be withheld from your
paycheck? - ANSWERunion dues, insurance premiums and contributions to savings
or retirement plans.
A good guideline to follow is that your student loan payments should not exceed
what percent of your gross monthly income? - ANSWERGenerally, your student loan
payments should not exceed 8 to 10 percent of your gross monthly income.
