Credit
Credit allows you to do what?
Purchase an item right now and pay for it later.
You have the right to look at your credit report at least ____ per year for free.
Once.
True or false? Student loans are usually not forgiven. Even if you file for bankruptcy.
True!
Students borrow these funds directly from the U.S. Government. There are two types.
Federal Subsidized and Unsubsidized Stafford Loans.
This is the fastest-growing age group filing for personal bankruptcy.
a) 18 to 24 year-olds
b) 35 to 40 year-olds
c) 45 to 50 year-olds
a) 18 to 24 year-olds
What is the most important thing you can do to build good credit?
Make your payments on time.
What will your credit report say if you've made your payments on time?
"OK"
What are ways you can prevent racking up too much Student Loan Debt?
Attend a cheaper college for your first year because Gen Eds are all the same anyway.
Apply for scholarships or grants.
Apply for Work Study.
Work for an employer that will pay for you to go to college.
A ____ is basically free money for school that does not need to be repaid.
Grant; scholarship
According to ramseysolutions.com, approximately ____% of Americans have some type of debt.
- 46
- 77
- 84
77% (that's nearly 8 out of 10 people!)
Financial experts recommend that you use no more than _____% of your total available credit at one time?
30%
What will your credit report say if you were 30 days late on one of your payments?
"30"
In Financial Aid World, your parents' income counts as yours until you are how old?
24
Fact: the average federal student loan debt is highest amongst which of these groups?
- Women
- Hispanics
- African Americans
African Americans ($42, 478)
Women are the 2nd highest, carrying about $31, 772 worth of student loan debt)
A credit score of 715 would be considered ____ on the credit scale.
a) Fair
b) Excellent
c) Good
c) Good (range for "good" is 690 - 719)
A red "X" on a credit report means...
"Potentially Negative."
What is the difference between Subsidized and Unsubsidized Student loans?
Subsidized loans don't require you to pay the interest. Unsub loans do.
Describe Work Study.
Part-time employment that helps students pay their tuition while also giving them work experience in their chosen field of study.
According to pgpf.org, in the past few years, the amount of student loans people couldn't afford to pay increased nearly ___%.
a) 30%
b) 50%
c) 45%
b) 50% (it rose from $178 billion in 2016 to $263 billion in early 2020, which is a 50% overall increase).
What things can affect your credit history?
How much debt you have.
Your payment history.
Length of time your accounts have been open.
A bankruptcy will show up on your credit report for __ years.
If you are having trouble repaying your loan, you can postpone your payments with these.
Deferment or Forbearance
Why should you avoid a private student loan?
Private loans are offered by commercial banks. These loans often have high interest rates, require a credit check, and have little repayment flexibility.
According to safe1creditunion.org, ____% of Americans are struggling financially, living paycheck to paycheck.
54%