Ch $07$: Assignment $-$ Using Consumer Loans

parents, as they consider options for obtaining a loan to finance Deborah's higher education.

Fill in the blanks to provide the correct information.

COUNSELOR: Deborah, I understand that you need additional aid to pay for your higher education and that your parents are willing to help you.

They can apply for a loan.

DEBORAH: I$\text{'}$m so relieved to hear that. I have a $,$ but it just isn't enough.

COUNSELOR: Mr$.$ and Mrs$.$ Cuttner, let's review a couple of the loan's terms that are different from those of Deborah's loan. First, you be subject to And, the interest rate on your loan will be than Deborah's.

MRS$.$ CUTTNER: That's okay. We're willing to accept those terms, not only because we want our daughter to concentrate on her studies rather than get another job, but also because we like knowing that the borrowing limit is

instead of

COUNSELOR: Good. Then let's talk about paying back the loan. Are you aware of the general terms regarding interest and timing of repayment?

MR$.$ CUTTNER: Yes. Interest will start to accrue $.$ We'll most likely be expected to begin repaying the loan

COUNSELOR: Very good. Let's start completing the application for a loan. And remember, the interest payments may be tax deductible depending on

DEBORAH: Thank you for your help. I$\text{'}$m looking forward to starting the next phase of my education. And, thanks, Mom and Dad!

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