#1
Which of the following is a type of financial aid that does not need to be repaid?
Scholarship
ExplanationFinancial aid without repayment obligation.
#2
What is the Free Application for Federal Student Aid (FAFSA) used for?
To determine eligibility for federal financial aid
ExplanationUsed to assess eligibility for federal financial assistance.
#3
Which of the following is NOT considered a source of college funding?
Credit card
ExplanationCredit cards are not typical sources of college funding.
#4
Which federal agency oversees the administration of most federal student aid programs?
Department of Education
ExplanationResponsible for managing federal student aid programs.
#5
Which of the following federal student aid programs provides part-time employment to students to help pay for college expenses?
Federal Work-Study Program
ExplanationProgram offering part-time jobs for college students.
#6
What is the purpose of a 529 savings plan in the context of college funding?
To save for future college expenses
ExplanationSavings plan designed for future educational costs.
#7
What is the primary benefit of applying for scholarships?
Avoiding student loans
ExplanationReduction in reliance on student loan debt.
#8
What is the maximum income limit to be eligible for a Pell Grant in the United States?
There is no income limit
ExplanationIncome limit does not apply to Pell Grants.
#9
Which type of financial aid requires the recipient to demonstrate financial need?
Grant
ExplanationFinancial aid based on demonstrated need.
#10
What is the CSS Profile used for in the college financial aid process?
To determine eligibility for institutional aid
ExplanationAssesses eligibility for institutional financial aid.
#11
What is the maximum amount of federal student loans a dependent undergraduate student can borrow in their first year of college?
$5,500
ExplanationMaximum first-year borrowing limit for dependent undergraduates.
#12
What is the primary difference between a subsidized and unsubsidized federal student loan?
Unsubsidized loans do not accrue interest while the student is in school
ExplanationInterest accrual during enrollment differs between loan types.
#13
Which of the following is an example of a need-based scholarship?
Income-based scholarship
ExplanationScholarship awarded based on financial need.
#14
Which federal agency oversees the regulation and management of private student loans?
Consumer Financial Protection Bureau
ExplanationResponsible for private student loan oversight.
#15
What is the primary difference between subsidized and unsubsidized federal student loans?
Subsidized loans are based on financial need
ExplanationSubsidized loans are need-based.
#16
What does the Expected Family Contribution (EFC) represent in the financial aid process?
The amount a family is expected to contribute toward college costs
ExplanationFamily's anticipated contribution to college expenses.
#17
What is the interest rate on federal Direct PLUS loans for parents?
Fixed interest rate set annually
ExplanationAnnual fixed interest rate for federal PLUS loans.