Personal Finance

Friday, February 29, 2008

Student Debt Soars

1- Private school loans have less interst to pay than state univeristy and is wider abailability.

2- So they can pay off the debt faster with a college degree. If they drop out they have limited ability to pay it off.

3- Beginning July 1, 2008, the TEACH Grant program will provide up to $4,000 a year in grant aid to undergraduate and graduate students and students enrolled in a post-baccalaureate teacher credential program, or current or prospective teachers. Eligible undergraduate and post-baccalaureate students may not receive more than $16,000 and graduate students may receive no more than $8,000 in total TEACH Grants.

Tuesday, February 26, 2008

Section 6.1 Questions

1. Advantage -lets you enjoy goods and services now.
-credit cards allow you to combine several purchases, making just 1 monthly payment.
Disadvantage- temptation to buy more than you can afford.
-If you fail to pay your bills you can lose your good credit reputation.

2. close-end credit - is credit as a one-time loan that you will pay back over a specified period of time in pay ments of equal amounts.
Open-end credit - is credit as a loan with a certain limit on the amount of money you can borrow for a variety of goods and services.

3. A) Family or parents.
B) Commercail banks, Savings plan, and Credit Unions.
C) Finance companies and Retail stores.

5. I think using credit cards is fine as long as you have the money to back it up. Ceridt cards should only be used in emergancy becuase if you use everyday for trival goods you can go over your financial limits. I do plan on geting a credit card when i am older and have more income. I prefer using cash one low priced goods and using a credit card for high priced goods.