Retirement Savings
What makes up a persons net worth?
Assets - Liabilities
True or False:
Grants do not have to be repaid
True
What is the APR for subsidized loans currently?
4.99%
True or False:
Is everything I borrow reported to the Credit Bureaus
False
What is the lowest credit score a person can get?
300
What happens if you withdraw your retirement savings earlier than the age 59 1/2?
A 10% tax will be applied
Why is it important to fill out the FAFSA as early as possible?
You will be more likely to qualify for Financial aid from the government
How long is the standard repayment(years)?
10 years
General rule of thumb is to keep credit utilization at __% or lower
30%
Whats the relationship between credit score and interest rate?
The better credit score the lower the interest rate/ the lower the credit score the higher the interest rate
At what age have most people started saving for retirement?
25-30 years old
The net price=cost of attendance minus ___
Financial Aid
Whats the APR for Parent Plus loans currently?
7.54%
Which type of inquires affect credit score?
Hard inquires
Name one reason it is more convenient to carry a credit card rather than carry cash
Its safer to use a credit card since some credit card companies will refund fraudulent purchases or purchases made if your card was stolen. They offer flexibility since they can be used for a variety of purchases. In case of a emergency they may offer a less expensive borrowing option than a payday loan and when paying the bill in full each month can help you build positive credit.
True or False:
The government will double the amount you paid for a series EE bond if it hasn't doubled at the end of 20 years
True
Whats the difference of the net price and the sticker price?
The net price is the sticker price minus the scholarships and grants. The sticker price is the yearly cost of the college education.
A temporary postponement of loan payments is what?
Deferment
How can people under 18 start building credit?
Being a authorized user on parent credit card
Rylin has an average daily balance of $6,800 with a APR of 6.7% whats the financial charge for this month?
$37.97
What effect can saving a few years earlier for retirement have on a person?
You would have more money since the money will be compounding more and might be able to retire earlier than expected
Whats the difference between a Private Non-Profit and For Profit college?
Non-Profit colleges reinvest the money they get into the college while the For Profit college distributes the profits among the owners
When does interest start accruing with unsubsidized loans
The day you receive the loan
The payment history makes up how much percent of a credit score?
a) 25% b) 35% c)10% d)20%
b) 35%
Leonardo has a finance charge of $9.48 and a APR of 8.9%. Calculate his Average Daily Balance
$1278.20