30. Dan must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?
a.) If he went to a state college rather than a private college. In short, a finance charge is called the cost of borrowing money. Going to a less expensive college will allow him to borrow less but this will not lessen the finance charge.
His parentıs co-signatures may lower the finance charge rate if their credit scores are good. Borrowing against the house would be, under the best of circumstances, a better option that Dan borrowing the money himself. Government backed loans have been considered, until recently, one of the better options.
b.) If his parents cosigned the loan.
c.) If his parents took out an additional mortgage on their house for the loan.
d.) If the loan was insured by the Federal Government.
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