#1
Which of the following is a common source of funding for higher education?
All of the above
ExplanationVarious sources such as federal aid, scholarships, and private loans are common for funding higher education.
#2
What is the FAFSA?
A financial aid application form
ExplanationFAFSA is the Free Application for Federal Student Aid, used to apply for financial aid for college.
#3
What is the role of a financial aid advisor?
All of the above
ExplanationFinancial aid advisors assist with various aspects of the financial aid process, including advising on options, applications, and managing aid.
#4
Which of the following is NOT a typical expense covered by financial aid?
Entertainment expenses
ExplanationFinancial aid typically covers tuition, fees, books, and living expenses but not entertainment.
#5
What is the purpose of a 529 college savings plan?
To save money for college expenses
Explanation529 plans are designed to help families save and invest for future college expenses.
#6
What does EFC stand for in the context of financial aid?
Expected Family Contribution
ExplanationEFC represents the amount of money a family is expected to contribute toward a student's college costs.
#7
What is a 529 plan?
A tax-advantaged savings plan for education expenses
ExplanationA 529 plan helps families save for future college expenses with tax advantages.
#8
What is the Free Application for Federal Student Aid (FAFSA) deadline for the upcoming academic year in the United States?
June 30th
ExplanationJune 30th is the deadline for submitting the FAFSA for the upcoming academic year.
#9
What is the concept of 'cost of attendance' in higher education?
The total amount of money a student must pay to attend a college or university
ExplanationCost of attendance includes tuition, fees, room and board, books, supplies, and other expenses.
#10
What is the difference between a grant and a loan?
Loans must be repaid, while grants do not
ExplanationGrants provide funds that don't require repayment, whereas loans need to be paid back with interest.
#11
What is the main difference between subsidized and unsubsidized federal student loans?
The government pays the interest on subsidized loans while the student is in school
ExplanationSubsidized loans have interest paid by the government during schooling, unlike unsubsidized loans.
#12
What are the potential consequences of defaulting on student loans?
All of the above
ExplanationDefaulting on student loans can lead to financial penalties, damaged credit, and legal action.
#13
What is the difference between subsidized and unsubsidized federal student loans?
The government pays the interest on subsidized loans while the student is in school
ExplanationSubsidized loans have interest covered by the government during schooling, unlike unsubsidized loans.
#14
What is the maximum income level to qualify for the Pell Grant in the United States?
There is no maximum income level
ExplanationThe Pell Grant does not have a strict income cutoff, but eligibility is based on financial need.
#15
What is the difference between a subsidized and unsubsidized Stafford Loan?
The government pays the interest on subsidized Stafford Loans while the student is in school, but not on unsubsidized Stafford Loans
ExplanationSubsidized Stafford Loans have interest covered by the government during schooling, unlike unsubsidized loans.