Financial Literacy

Financial Literacy

Financial Literacy CCC 101

Multiple Choice

A credit report is?

• A list of your financial assets and liabilities

• Your monthly credit card statement

• A loan and bill payment history

• Your credit line with your financial institution

Your credit report contains personal information, credit account history, credit inquiries and public records. This information is reported by your lenders and creditors to the credit bureaus. Much of it is used to calculate your FICO® Scores to inform future lenders about your creditworthiness.

Multiple Choice

Your credit scores starts at 0

• True

• False

Credit Score

The truth is that we all start out with no credit score at all. Credit scores are based on the information in our major credit reports, and such reports aren’t even created until we’ve had credit (e.g., a credit card or loan) in our names for at least six months. Without any credit history, reports and scores won’t magically burst into existence when we turn 18 — the age at which we first become eligible to apply for credit — contrary to common myth.

Multiple Choice

A good credit score is

• 300

• 750

• 0

The 411 on Credit Score

• A good credit score to buy a car is usually above 660, which is the minimum score to be considered a "prime" borrower by Experian.

• Many auto lenders will consider more than a credit score, though. A borrower's debt-to-income ratio, full credit history, and down payment amount will also affect the terms of the loan.

• the higher the borrower's credit score, the better the loan terms.

• Generally, the higher the credit score, the lower the interest rate.

• Some lenders may also require a cosigner for those with lower credit scores. A co-signer is somebody with established credit who legally agrees to take responsibility of paying back the loan if the primary borrower fails to do so.

Multiple Choice

Define annual fee

• A yearly charge by banks and lenders for use of their card

• A fee charged by the bank for using the ATM machine

Multiple Select

Negative information stays on your credit report for 7-10years

• True

• False

Multiple Choice

Interest rates are

• lower if you have a better credit score

• Increase the cost of borrowing when they are higher.

• Are subject to change.

• All of the above

Interest Rate

Interest is the cost of borrowing money, and an interest rate tells you how quickly those borrowing costs will accumulate over time. For example, if someone gives you a one-year loan with a 10% interest rate, you'd owe them $110 back after 12 months. 

Multiple Choice

Besides tuition most colleges charge their students for:

• additional fees

• Room and Board

• Books

• All of the above

Multiple Choice

Scholarships and grants are considered gift aid because they:

• are a present to you

• you aren't charged interest

• Do not have to be paid back

• Can be used for spring break trips

Multiple Choice

Before signing up for a credit card you will want to know

• What the interest rate is on purchases

• What types of late fees could be charged

• If there is an annual fee

• All of these are correct

Multiple Choice

Money that you borrow for college that you do have to pay back is

• Scholarships

• Pell Grant

• Workstudy

• Student loans

Multiple Choice

Money available from various sources to help students pay tuition and other college expenses. These funds may be scholarships, grants, loans, and other assistance programs from the state or federal government or other organization.

• Grant

• Scholarships

• Financial Aid

• FAFSA

Multiple Select

The FAFSA-Free Application for Federal Student Aid

• Must be submitted your freshman year

• Must be submitted every year

• Must be done every semester

• Is good for all years you are in college

Multiple Choice

The FAFSA generates a number called your EFC. What does EFC stand for?

• Every FAFSA counts

• Expected Family Contribution

Multiple Choice

Which of these are NOT a type of loan you can use for college

• Subsidized

• Unsubsidized

• Private

• Special

Multiple Choice

What is the difference between subsidized loans and unsubsidized loans?

• One is for freshman and the other for sophomores

• sub loans come with a submarine shaped bun and pepperoni. Unsubs come with no bun or pepperoni

• The government pays the interest on subsidized loans during periods of authorized deferment such as in school deferment.

Subsidized and Unsubsidized Loans

• Subsidized Loans-aren't accruing interest while you are in school. This makes the loan less expensive than an Unsubsidized Loan

• Loan limits are determined by your grade in school, if you are a dependent or independent student,

• 
  

Multiple Choice

What does it mean to defer your student loan?

• to stop paying on your loan because you didn't get a job that you wanted

• temporarily postponing your student loan payment

When should I defer my loan

Deferment does not happen automatically in most cases. For example after you leave CCC and enroll in another college, you will need to request a loan deferment from your lender or from your other school.

Another time that you may want to defer your student loan is if you are between jobs and having trouble making your loan payments.

Be aware that you might still be responsible for paying the interest that accrues during the deferment period.

Multiple Choice

What does it mean to default on your student loan

• Failure to pay your loan and stick to the terms of the loan

• To pay your loan in full

• When you stop making payments while you are in school

Default Loan Info

If your loan continues to be delinquent, the loan may go into default. The point when a loan is considered to be in default varies depending on the type of loan you received.

For a loan made under the William D. Ford Federal Direct Loan Program or the Federal Family Education Loan Program, you’re considered to be in default if you don’t make your scheduled student loan payments for at least 270 days.

What to do if you default

If you defaulted on any of your federal student loans, contact the organization that notified you of the default as soon as possible so you can explain your situation fully and discuss your options. If you make repayment arrangements soon enough after your loan has gone into default, you may be able to resolve the default quickly. Learn more about getting out of default.

Multiple Choice

What can happen if I default on my student loan

• Your tax refund may be withheld

• Your paycheck may be garnished. Your employer with holds a portion of your check and sends it to your lender

• Your default is reported to credit bureaus damaging your credit for years.

• All of the above

Loan options

You should know that there are other options if you are having issued paying your student loan. You may want to talk to your lender about other payment plans which are income driven.

income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size. We offer four income-driven repayment plans:

Revised Pay As You Earn Repayment Plan (REPAYE Plan)

Pay As You Earn Repayment Plan (PAYE Plan)

Income-Based Repayment Plan (IBR Plan)

Income-Contingent Repayment Plan (ICR Plan)

Pick up the phone

If You Are Delinquent or In Default, Your Loan Servicer Can Help

If you're having trouble making payments or are concerned about the status of your federal student loan(s), you have options available to you.

Contact your loan servicer to discuss how to get back on track with payments. There are several affordable repayment options that you may be able to take advantage of to continue making loan payments even when times are tough.