Higher Education and Financial Planning Quiz

Scholarships are funds awarded for academic achievement or other criteria that do not need to be repaid.

The FAFSA, or Free Application for Federal Student Aid, is a form used by college students in the United States to determine eligibility for federal financial aid.

A student budget aims to manage and minimize expenses during the college years, helping students stay financially responsible.

A 529 plan's primary purpose is to provide a tax-advantaged way for families to save and invest for future college expenses.

Pell Grants are need-based awards that do not require repayment, providing financial assistance to eligible low-income students.

Wage garnishment is the process of deducting money directly from a borrower's salary to repay defaulted student loans.

The 529 plan is a savings plan designed to help families set aside funds for future college costs.

EFC is the calculated amount a family is expected to contribute towards their child's college education, based on financial information provided in the FAFSA.

A Roth IRA is not specifically designed for education savings, unlike other dedicated plans such as 529 plans or Coverdell ESAs.

The grace period is a set period after leaving school or graduating when a borrower does not have to make loan payments, allowing time to secure employment before repayment begins.

Subsidized loans have interest covered by the government during enrollment, while unsubsidized loans accrue interest that borrowers are responsible for.

The FAFSA deadline is crucial as it determines a student's eligibility for various financial aid programs, including federal and some state aid, with limited funding available.

While 529 plans cover various educational expenses, travel expenses are generally not considered qualified expenditures for this savings plan.

Subsidized loans are awarded based on financial need, and the government covers interest during certain periods, whereas unsubsidized loans are not need-based, and borrowers are responsible for interest from the start.

The repayment term for federal student loans varies depending on the specific loan program, with options ranging from standard 10-year plans to extended or income-driven repayment plans.