Week 2 Quiz
Instructions: Select the correct answer for each question. You may use this worksheet to highlight the correct answer using the highlight function or simply create a Word Document, number from 1-15 and provide the correct letter for each corresponding question. Each question is worth .2 points.
1) What is a credit utilization rate?
a. How many open credit accounts you have
b. The percentage of all your reported credit accounts that are open accounts
c. Your total outstanding balance as a percentage of total credit limit
d. How often you use credit to make purchases
2) Students should aim to keep their total student loan debt to
a. less than the salary they are likely to make their first year out of school
b. less than
…show more content…
A line of credit with a high monthly limit
8) What is the difference between a subsidized and an unsubsidized Stafford loan?
a. A subsidized loan is interest-free for the first 36 months after graduation; an unsubsidized loan is interest-free for only 6 months after graduation.
b. A subsidized loan does not have to be paid back on the death of a student, but an unsubsidized loan has to be.
c. A subsidized loan is based on student need, whereas an unsubsidized loan is available to any student, regardless of financial need.
d. A subsidized loan is only available to foreign students.
9) What are two ways you can delay student loan payments?
a. Deferment or payment desist
b. Deferment or exoneration
c. Deferment or subsidization
d. Deferment or forbearance
10) Which site provides a free credit report from each of the three national credit reporting agencies?
a. www.freecreditreport.com
b. www.annualcreditreport.com
c. www.creditreports.com
d. www.freecreditscore.com
11) Credit scores can be used for to determine how much you pay to receive which of the following services?
a. Health insurance
b. Auto insurance
c. Life insurance
d. Disability insurance
12) Which is the best way to pay off credit-card debt?
a. Dip into your emergency savings.
b. Pay the largest portion you can afford from your salary every month.
c. Take out a loan from your 401k at a lower interest rate than the credit card.
d. Use a HELOC (Home Equity Line of Credit) to pay off
The United Nations is an organization established 24 October 1945. It was a replacement for the League of Nations. The UN was created following the Second World War to prevent another such conflict. The organization is financed by giving its member states a substantial fee. Its objectives include maintaining international peace and security, promoting human rights, fostering social and economic development, protecting the environment, and providing humanitarian aid in cases of famine, natural disaster, and armed conflict.
For many, student loans are the only way to finance one’s education. Paying out of pocket simply isn’t a reality for most, so they rely on state and national government to provide them the funds to attend school, buy textbooks, and even pay for room and board. Sign on the dotted line, and suddenly a subsidized or unsubsidized loan shows up as a credit on your student account. Any overage is paid to you by check to cover
The highlighted red answers are the ones that are correct. The simplest way of navigating through this
Which of the two banks or credit unions that you researched would you be most likely to choose to open an account with? Why? (2-4 sentences. 2.5 points)
Under Texas law, the rents and dividends belong to the community even though this income is derived from separate property. Under California law, the income is community or separate depending on the state law classification of the underlying assets. In this case, the interest is community income because the savings account was funded with community property.
The decision to attend college for most individuals yield promise of advancement in being able to further one’s learning, and assists with developing a marketable educational portfolio from an institution of reputed academia. However, with the pursuit of obtaining a college degree from a university, there are augmented concerns with student loans and repayment issues. In electing to secure a student loan for college, prospective students or parents should realistically, forecast or measure probable (anticipated) student debt. In particularly, with students aspiring to attend college, several organizations or subsidiaries, and for-profit institutions cash in on unknowledgeable hopefuls contributing to the student loan debt dilemma/crisis (or student debt). The college costs and financial constraints for student borrowing, if ill-prepared will substantially effect students in pre-graduate or even post-grad status. The findings suggest that there is eminence of the possibility of default, with repayment behavior which effects long-term financial outlook. In examining the data on cumulative debt, number and characteristics of borrowers, types of institutions, and repayment dynamics there are unsettles that arise in the gest of student borrowing.
The company is in direct violation of the ADEA of 1967 which states (2)“certain applicant and employees who are 40 years of age and older are protected from discrimination on the basis of age in hiring, promotion, discharge, compensation, or terms, conditions or privileges of employment.” In this case the 68 year old employee could sue the company based on Age Discrimination and win.
According to a Student Loan Hero article by Kat Tretina (2017), federal student loans, as indicated by the name, are financed by the federal government as a form of federal student aid and provides students without means at their disposal with financial assistance to attend college. Moreover, Tretina (2017) asserts in her article that federal student loans should be students first choice in loans for the federal government “tend to have lower interest rates and more generous repayment terms.” But as enticing as federal student loans’ benefits are, a loan is a loan, and all individuals must pay back their federal student loans with interest once completing college—including those who withdrew from school and did not finish. And if for any reason a borrower cannot make their monthly-scheduled payments, then one’s unpaid balances will increase significantly and eventually cripple their financial prospects if left
One argument is that “federal student loans have robust protections in place to help borrowers who are in a tight spot”(Josuweit). Some of these protections are deferment and forbearance or income-driven repayment plans. Forbearance can be used to pause monthly payments temporarily and income-driven repayments can lower monthly payments to match the students income, costs of living, and family size. These protections help out students who do not get a high-paying job right out of college and may have to demonstrate unemployment or another economic hardship to qualify. Equally important, “the Direct Loan program plays a key role in providing millions of Americans with an opportunity to obtain a postsecondary education”(Josuweit).
Student loans can be a resource part of our culture capital. Student loans are widely used in the United States. For the project, student loans were explained more in depth. It is important to understand some key terms and what they mean for student loans. When students are thinking about furthering their education they need to know the different from a grant, scholarship, work-study, and the two types of loans that come with federal funds. Direct subsidized loans are based on financial need and the interest is paid by the board of education. Direct unsubsidized loans are not based on financial need, but the student will need to pay the interest rate while attending school.
A hard choice to choose, either paying for college or getting loans and paying them when you leave college or drop below half-tie enrollment("Federal Student Aid" Understanding
When it comes to student loans, there is a lot of information to take in—especially for a new college student who is exploring their financing options for the first time, or a new graduate who has just started paying off their student loan debt. With all of the different information out there, it can be easy to get confused, and perhaps even misunderstand certain things about student loans. The following are some common student loan myths, debunked:
Some students may prefer federal student loans rather the private student loans. Because the repayment period is done mainly after graduation or when you change your enrollment status. Some students might prefer it because there is a fixed interest rate, not because it is usually lower than those of private student loans, but because when there is a fixed interest rate, there is no fluctuations. Usually, the credit card interest rate is higher than the interest rate of student loans.
• Subsidized Stafford Loan - (Formerly Guaranteed Student Loan) Federal Stafford Loan funds are borrowed from a lending institution (e.g., a bank or credit union). Eligibility for this low interest loan is based on financial need. Students must be enrolled at least halftime to receive a loan. The borrower should check with the organization that holds the loan for the interest rate. Repayment begins six months after enrollment drops below half time. The federal government pays the interest on this subsidized loan while the student is in school or in deferment.
One strategy for using a credit card could be to only use it on purchases that are factored into the budget such as gas, groceries, or eating out. This way you can pay off the balance once you receive the statement and do not have to worry about accumulating interest. Also, doing this is a great way to build your credit without falling into debt since you have already