Deck 15: Education Planning Basics

Question 1

Which of the following higher education expenses does not qualify for the education savings bond program?

A)Fees.
B)Lab fees.
C)Textbooks.
D)Tuition.

Answer 1

C

Question 2

The expected family contribution takes into account:

A)Family members who have attended school during the previous year.
B)Family's taxed income only.
C)Family's taxed and untaxed income.
D)Family's untaxed income only.

Answer 2

C

Question 3

The maximum deductible amount of student loan interest is:

A)$1,500 per tax return.
B)$1,500 per student.
C)$2,500 per tax return.
D)$2,500 per student.

Answer 3

C

Question 4

Which of the following is a Non need-based Federal Student Aid Program?

A)Direct subsidized loan.
B)Federal Supplemental Educational Opportunity Grant (FSEOG).
C)Pell Grant.
D)Teacher Education Access for College and Higher Education (TEACH)grant.

Question 5

Which of the following is a type of Prepaid Tuition Plan?

A)Annuity plan.
B)Contract Plan.
C)Endowment plan.
D)Trust plan.

Question 6

Which of the following programs is guaranteed to increase in value at the same rate college tuition increases?

A)College Savings Plan.
B)Prepaid Tuition Plan.
C)Uniform Gifts to Minors Act.
D)Uniform Transfers to Minors Act.

Question 7

All of the following statements about the lifetime learning credit is correct except:

A)Available for graduate course work.
B)Available for undergraduate course work.
C)Credit may only be used for five years.
D)Provides a tax credit for qualified education expenses.

Question 8

Which of the following is a separate legal entity that holds assets in trust for a child until the child reaches age 21?

A)Section 403(b).
B)Section 529(a).
C)Section 1185(b)Asset Trust.
D)Section 2503(c)Minor's Trust.