Scenario: You are $22$ years old, unmarried, have no children, and a take$-$home pay of $$2,500$ per month. You depended on your parents while attending college. You are engaged to be married in $18$ months. You have very little credit history, but want to establish a good credit rating so that you may be able to rent$/$buy a home and qualify for low$-$cost loans when you buy a new car or appliance. You also want to be able to qualify for credit cards with good reward programs and low fees and interest rate.

Read each statement below and indicate whether it is a good or bad reason for using debt.

$\backslash$table$[[$Statement$,\backslash$table$[[$Bad$],[$reason$]],\backslash$table$[[$Good$],[$reason$]]],[\backslash$table$[[$When a portion of your income must be spent repaying debt and paying interest, a sacrifice in spending that$],[$results$.]],O,],[$The availability of credit cards or easy credit is often accompanied by the potential for overspending.,,$],[$Debt provides financial flexibility in the case of emergencies.,,$],[$Debt provides the means to make guaranteed reservations.,,$],[$Debt provides the means to pay for an education.,,$]]$

When is the use of borrowed money for an education justified?

When the required repayments can be postponed for many years

When the education will maintain your current quality of life

When the investment is expected to generate additional income that is less than the cost of the education.

When the cost of your education is less than the estimated additional income that the education is expected to provide

When the cost of the student loan is less than the interest rate on your credit cards.