Understanding Bad Decisions and Student Loans

These flashcards cover key concepts related to bad decisions in corporate contexts, the Wells Fargo scandal, understanding college accreditation, types of student loans, and financial aid.

What are some influences that can lead to bad decisions according to the lecture?

Obedience, conformity, and the role of culture.

What unethical practice did Wells Fargo employees engage in to meet sales goals?

Creating fake bank and credit card accounts.

How many unauthorized accounts were created by Wells Fargo employees?

Approximately 2.1 million initially and a total of 3.5 million were discovered.

What phrase means 'Buyer Beware' in Latin?

Caveat Emptor.

What are the four types of student loans mentioned in the lecture?

1) Federal Subsidized Direct Student Loan; 2) Federal Unsubsidized Direct Student Loan; 3) Federal PLUS Loan; 4) Private/Alternative Student Loans.

What happens to student loan debt in bankruptcy?

Student loan debt cannot be discharged even in bankruptcy.

What is suggested to do when choosing a college for proper accreditation?

Check if the school appears on the US Department of Education's website for accreditation.

In terms of financial aid, what are the three types discussed?

1) Grants and Scholarships; 2) Federal Work Study; 3) Student Loans.

What is a key suggestion for managing a private student loan?

Shop around for the lowest FIXED interest rate.

What misunderstanding often occurs with unsubsidized student loans?

Borrowers may not understand that interest accrues immediately and can lead to a significantly higher repayment amount.