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1.
Which of the following two plans has higher contribution limits?
529 plan. As a rule, 529 plans offer much higher contribution limits.
2.
There are situations in which a student is allowed to not pay back his or her student loans.
True. Taking certain jobs after graduation, such as in community service, can result in your student loans being forgiven.
3.
Why are scholarship search firms so frequently full of empty promises?
All of the above. These are all reasons why going to a scholarship search firm is often fruitless.
4.
A veteran of the US armed forces qualifies as an independent student.
True. Veterans are treated as independent for financial aid purposes.
5.
As a rule, the cost of college tuition is rising faster than inflation.
True. Currently, tuition costs are rising more than twice as fast as inflation.
6.
When filling out a financial aid form, an independent student _______ questions about parental income.
May ignore. These questions are not relevant for independent students.
7.
With regard to filling out the FAFSA, parental assets include which of the following?
All of the above. All of these are counted on the FAFSA.
8.
Educational expenses used as the basis for a tax-free withdrawal from a Coverdell education savings account cannot be used toward other education deductions or credits on the 1040 tax form.
True. One generally cannot take a deduction or credit for any educational expenses used as the basis for a tax-free withdrawal from a Coverdell account.
9.
To qualify for financial aid, a family must pass a needs test, which would consider _______.
All of the above. A needs test would look at all of these elements.
10.
The chief factor in determining financial need is _______.
The cost of education for all family members. Need is the biggest factor.
11.
Home schools do not receive taxpayer funds.
True. As such, families must pay for them on their own.