AnswersPersonal FinancePlanning and Paying for College

Planning and Paying for College — Quiz Answers

10 verified answers3 views
1
Free Preview

What is a tax advantage?

A
required withdrawals
B
reduced or delayed taxes on earnings
C
guaranteed returns
D
increased fees
3

Why does saving early reduce borrowing?

A
eliminates FAFSA
B
guarantees scholarships
C
increases tuition
D
provides funds before borrowing
4

What is a 529 plan?

A
a checking account
B
a loan program
C
a tax-advantaged education savings plan
D
a scholarship
6

What is a key difference between a Roth IRA and a Traditional IRA?

A
Traditional IRAs eliminate taxes.
B
Roth IRAs are tax-free later, Traditional IRAs are taxed later.
C
Roth IRAs are loans, Traditional IRAs are savings.
D
Roth IRAs require repayment.
7

What is a merit-based scholarship?

A
based on FAFSA
B
based on loans
C
based on income
D
based on achievements
8

Tax-advantaged accounts allow savings to grow with ______ taxes.

A
immediate
B
reduced or deferred
C
increased
D
annual
9

What does FAFSA stand for?

A
Free Application for Federal Student Aid
B
Financial Aid Support Account
C
Federal Scholarship Access
D
Federal Aid System Application
10

How are grants different from loans?

A
loans are free money
B
loans are tax-free
C
grants must be repaid
D
grants usually do not require repayment

Did you find these answers helpful?

Planning and Paying for College — Quiz Answers…