Home > Planning > Beginner
Planning Beginner: Education Planning

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Competition among colleges lowers the cost of tuition.
Choose wisely. There is only one correct answer.
False. Competition actually raises the cost of tuition because colleges must spend money to woo prospective students.
2.
Which of the following two plans has higher contribution limits?
Choose wisely. There is only one correct answer.
529 plan. As a rule, 529 plans offer much higher contribution limits.
3.
The chief factor in determining financial need is _______.
Choose wisely. There is only one correct answer.
The cost of education for all family members. Need is the biggest factor.
4.
Need-based financial aid is a loan that must be repaid.
Choose wisely. There is only one correct answer.
False. While most need-based financial aid is in the form of loans, there are scholarships and work-study programs as well.
5.
All of the following are qualified educational expenses for tax-free withdrawals from a Coverdell account except _______.
Choose wisely. There is only one correct answer.
Transportation expenses. Transportation expenses are not qualified educational expenses.
6.
With regard to financial aid, the "income protection allowance" is for the basic living expenses of a family.
Choose wisely. There is only one correct answer.
True. The income protection allowance keeps a certain amount of money out of the financial aid calculation for this very purpose.
7.
What is the cutoff age for independent student status?
Choose wisely. There is only one correct answer.
24. This is the cutoff age.
8.
Why are scholarship search firms so frequently full of empty promises?
Choose wisely. There is only one correct answer.
All of the above. These are all reasons why going to a scholarship search firm is often fruitless.
9.
To qualify for financial aid, a family must pass a needs test, which would consider _______.
Choose wisely. There is only one correct answer.
All of the above. A needs test would look at all of these elements.
10.
All of the following need to be considered when planning for your child's education except _______.
Choose wisely. There is only one correct answer.
None of the above are exceptions. Education planning should be part of your overall financial planning strategy.
11.
Generally, which type of student may omit questions on the FAFSA that refer to parents' income?
Choose wisely. There is only one correct answer.
Independent students. Independent students will not need to provide that information.