Understanding College Financing and Credit

Which of the following is a type of financial aid that does not need to be repaid and is awarded based on financial need?

• Loan

• Grant

• Work-study

• Scholarship

What is the term for a program that allows students to work part-time while attending college to help pay for their education?

• Loan

• Grant

• Work-study

• Scholarship

Which of the following is a benefit of maintaining a good credit history?

• Higher interest rates on loans

• More financial options

• Limited borrowing capacity

• Increased debt

True or False: A credit report contains personal information such as your address and social security number.

• True

• False

What is the importance of a credit report to a lender?

• It shows the borrower's educational background.

• It helps determine the risk of lending money to the borrower.

• It provides the borrower's employment history.

• It lists the borrower's family members.

Which of the following is a method to pay for college that involves borrowing money and repaying it with interest?

• Grant

• Scholarship

• Student loan

• Work-study

Why is it important to establish a positive credit history?

• To increase the amount of taxes you pay

• To have access to better financial opportunities

• To decrease your credit score

• To limit your borrowing options

What information is typically found in a credit report?

• Your favorite hobbies

• Your credit history and personal information

• Your family tree

• Your educational achievements

How long is information typically retained in a credit report?

• 1 year

• 3 years

• 7 years

• 10 years

Which of the following is a benefit of using a credit card responsibly?

• It can lower your credit score.

• It can help improve your credit score.

• It increases your debt automatically.

• It has no effect on your credit score.