Student Loan
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Application
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Explain the purposes for which a student loan may be used.
- Explain for whom a student loan may be suitable.
- Identify the providers of student loans, such as:
- Federal government
- Provincial/Territorial government
- Financial institutions
- Identify that qualifying criteria exist for federal and provincial/territorial government student loans.
- Estimate the terms for a student loan.
- Explain the elements that may affect a student loan:
- Purpose of credit or borrowed funds
- Amount of credit requested / required
- Ongoing need for borrowing capacity
- Expected variability of interest rates
- Cost, including interest and fees
- Impact on cash flow
- Payment options (schedule, amounts, options)
- Expected prepayments
- Collateral requirements
- Expected lifetime of collateral (if applicable)
- Closure requirements / costs
- Tax impact
- Identify the tax treatment of interest payments charged on student loans.
- For provincial and federal government loans
- For loans from financial institutions
- Identify that special repayment programs may be available for government student loans, such as:
- Loan repayment assistance plans
- Loan forgiveness programs
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
---|---|---|---|---|---|---|---|---|---|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Explain the purposes for which a student loan may be used.
- Explain for whom a student loan may be suitable.
- Identify the providers of student loans, such as:
- Federal government
- Provincial/Territorial government
- Financial institutions
- Identify that qualifying criteria exist for federal and provincial/territorial government student loans.
- Estimate the terms for a student loan.
- Identify the tax treatment of interest payments charged on student loans.
- For provincial and federal government loans
- For loans from financial institutions
- Identify that special repayment programs may be available for government student loans, such as:
- Loan repayment assistance plans
- Loan forgiveness programs
Additional Knowledge Expected of CFP Professionals
- Determine how each of these factors may impact the suitability of a student loan:
- Purpose of credit or borrowed funds
- Amount of credit requested / required
- Ongoing need for borrowing capacity
- Expected variability of interest rates
- Cost, including interest and fees
- Impact on cash flow
- Payment options (schedule, amounts, options)
- Expected prepayments
- Collateral requirements
- Expected lifetime of collateral (if applicable)
- Closure requirements / costs
- Tax impact
- Evaluate how each of the factors may impact the suitability of a student loan.