Simulation: How Do I Apply For A Loan?

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Nov 13, 2015
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Credit Scores, Activities, Student Loans

We received a email request today from a teacher for a simulation that would help students understand the loan application process. What a great request! I know that I can sometimes forget the importance of teaching the “how” when it comes to personal finance as in “how to open a bank account,” “how to open a brokerage account”…Now we had an opportunity to help a teacher and add to our simulation library at the same time.

So, I went in search of an online loan application that would not require students to provide personal information (i.e. email address or Social Security Number) and would give them a feel for what it takes to apply for a loan. I stumbled upon a website for the Maryland State Employees Credit Union (SECU) which has a clear description of the loan process. In addition, SECU has an online application that students can complete without providing an email address or SSN.

I created an Activity: How Do I Apply for a Loan which walks students through a step-by-step process so they can actually apply for a loan online. As they go through the process, they are asked a series of questions from the perspective of a lender. One line of questioning deals with the importance of various items in the application and why lenders should care.

Enjoy!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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