Question

isabel is a young student trying to buy a new car. she does not have a credit history, so her mom has agreed to include her name on the loan application along with isabel. choose an answer from each dropdown list that correctly completes the sentence. isabels mom is acting as which means that if isabel defaults on the loan

Explanation:

A cosigner is someone who signs a loan agreement with the borrower. The cosigner is legally obligated to repay the loan if the borrower defaults. In this case, Isabel's mom is acting as a cosigner. A lender is the entity (such as a bank) that provides the loan. A creditor is a broader term that refers to any entity or person to whom money is owed. Since Isabel's mom is signing the loan application to take on the responsibility of repayment if Isabel defaults, the term "cosigner" is appropriate.

Answer:

First dropdown: cosigner. Second dropdown: she is legally obligated to repay the loan.