#1
Which of the following is a common type of college savings account?
401(k)
IRA
529 plan
Roth IRA
#2
What is the primary purpose of a FAFSA form?
To apply for student loans
To apply for scholarships
To apply for federal financial aid
To apply for admission to colleges
#3
Which type of student loan generally has a lower interest rate: federal or private?
Federal
Private
Both have the same interest rates
It depends on the borrower's credit score
#4
What does EFC stand for in the context of financial aid for college?
Expected Family Contribution
Estimated Financial Cost
Education Fund Calculator
Endowment Funding Commitment
#5
Which federal agency oversees the Federal Student Aid program?
Department of Education
Department of Treasury
Internal Revenue Service
Department of Labor
#6
Which of the following is NOT a type of federal student loan?
Direct Subsidized Loan
Direct Unsubsidized Loan
Direct PLUS Loan
Perkins Loan
#7
Which federal agency provides grants to help cover the cost of college for eligible students with financial need?
Department of Education
Department of Treasury
Internal Revenue Service
Department of Labor
#8
What is the recommended ratio of stocks to bonds in a college savings portfolio?
100% stocks
50% stocks, 50% bonds
75% stocks, 25% bonds
100% bonds
#9
What is the purpose of a Coverdell Education Savings Account (ESA)?
To pay for qualified education expenses
To save for retirement
To fund healthcare expenses
To invest in real estate
#10
What is the maximum contribution limit for a Coverdell Education Savings Account (ESA) per beneficiary per year?
$1,000
$2,000
$5,000
$10,000
#11
Which of the following is NOT a qualified education expense for a 529 plan?
Tuition and fees
Room and board (if enrolled at least half-time)
Student loan payments
Books and supplies
#12
Which of the following is NOT a factor typically considered in financial aid calculations?
Family income
Student's academic performance
Number of siblings in college
Value of the family's primary residence
#13
What does the term 'net price' refer to in the context of college costs?
The total cost of attendance minus grants and scholarships
The amount a student earns from a part-time job
The sticker price of tuition and fees
The price of textbooks and supplies
#14
What is the Free Application for Federal Student Aid (FAFSA) deadline for the academic year starting in fall 2024?
January 1, 2024
June 30, 2024
October 1, 2024
December 31, 2024
#15
What is the penalty for withdrawing funds from a 529 plan for non-qualified expenses?
No penalty
10% penalty on earnings plus income tax
20% penalty on earnings plus income tax
50% penalty on earnings plus income tax
#16
What is the main advantage of a prepaid tuition plan for college savings?
Guaranteed returns
Tax-free withdrawals
Locking in tuition rates
No contribution limits
#17
What is the advantage of a custodial account (UTMA/UGMA) for college savings?
Tax-deferred growth
Tax-free withdrawals
No contribution limits
Parental control over assets
#18
Which of the following is NOT a repayment plan option for federal student loans?
Standard Repayment Plan
Graduated Repayment Plan
Income-Based Repayment Plan
Variable Interest Repayment Plan
#19
What is the penalty for defaulting on a federal student loan?
No penalty
Garnishment of wages and tax refunds
Fine of $500
Community service
#20
What is the maximum annual amount a dependent undergraduate student can borrow in federal Direct Subsidized Loans?
#21
What is the maximum annual contribution limit for a Roth IRA account?