#1
Which of the following is a type of student loan?
Subsidized Loan
ExplanationSubsidized loans have lower interest rates.
#2
What is the concept of 'work-study' in the context of student financial aid?
Part-time employment for students to earn money while studying
ExplanationWork-study involves part-time employment for students to earn money while pursuing their studies.
#3
What is the Free Application for Federal Student Aid (FAFSA) EFC?
Expected Family Contribution
ExplanationThe FAFSA EFC is the Expected Family Contribution, representing the amount a family can contribute to a student's education.
#4
What is the difference between a subsidized and an unsubsidized federal student loan?
Subsidized loans do not accrue interest while in school
ExplanationSubsidized federal student loans do not accrue interest while the borrower is in school.
#5
What is the purpose of the Public Service Loan Forgiveness (PSLF) program?
To forgive student loans for individuals working in qualifying public service jobs
ExplanationThe PSLF program forgives student loans for individuals working in qualifying public service jobs.
#6
What is the FAFSA?
Free Application for Federal Student Aid
ExplanationThe FAFSA is the application for federal financial aid for students.
#7
What is the purpose of a 529 plan?
Tax-advantaged savings for education expenses
ExplanationA 529 plan provides tax advantages for saving money for educational expenses.
#8
What is the difference between subsidized and unsubsidized student loans?
Subsidized loans have lower interest rates
ExplanationSubsidized student loans come with lower interest rates compared to unsubsidized loans.
#9
What does the term 'merit-based aid' refer to in the context of education financing?
Aid awarded based on academic or other achievements
ExplanationMerit-based aid is financial assistance awarded based on academic or other achievements.
#10
What is the primary purpose of a Coverdell Education Savings Account (ESA)?
To save for qualified education expenses
ExplanationA Coverdell ESA is designed for saving money for qualified education expenses.
#11
What is the concept of 'ROI' in the context of education?
Return on Investment
ExplanationROI in education refers to the return on investment in terms of future career and earnings.
#12
In the context of employment, what does the term '401(k)' refer to?
Retirement savings plan
ExplanationA 401(k) is a retirement savings plan for employees.
#13
In the realm of employment, what is vesting in relation to retirement benefits?
The time it takes for a retirement plan to become fully owned by an employee
ExplanationVesting is the process by which an employee accrues ownership of their retirement plan over time.
#14
What is the significance of the Fair Labor Standards Act (FLSA) in employment regulations?
Sets the federal minimum wage and regulates overtime pay
ExplanationFLSA establishes the federal minimum wage and regulates overtime pay in employment.
#15
What is the significance of the FICO score in the context of personal finance?
Credit scoring system used by lenders to assess creditworthiness
ExplanationFICO score is a credit scoring system used by lenders to assess an individual's creditworthiness in personal finance.