HDFS 383 Application Exercise 3.8

College Savings Plans (CSP) Financial Aid (FA 100) College Savings Plans (CSP) Taxes (Tax) Calculations (Calc) 100 200 300 Home

Financial Aid—100 A form used to determine a student’s eligibility for all types of financial aid, including grants, work study, and loans. EFC FAFSA ACG FSEOG Home

Financial Aid—200 If a student had high financial need, which of the following aid types would like likely qualify for? Parent PLUS Loan Stafford Unsubsidized Loan Coverdell Grant Stafford Subsidized Loan Home

Financial Aid—300 Assume a graduate student was interested in obtaining additional aid for school, which would likely be the best option? Perkins Loan Stafford Subsidized Loan Graduate PLUS Loan Pell Grant Home

College Savings Plans—100 Which of the following types of accounts allows tax free withdrawals of earnings if used for qualified k-12 expenses? Coverdell Savings Accounts College Savings Plans (529 Savings Plans) Lifetime Learning Credit American Opportunity Credit Home

College Savings Plans—200 If a grandparent would like to start setting aside money for their grandchildren's unrestricted use in the future, which would be the best option? Coverdell Savings Accounts UGMA College Savings Plans (529 Savings Plans) Lifetime Learning Credit Home

College Savings Plans—300 Daily Double!!!! 4 points!!! Explain how prepaid tuition plans work and 1 disadvantage. Home

Taxes—100 The earnings on 529 college savings plans are _______ if funds are distributed for approved educational expenses. Tax free Tax deferred Home

Taxes—200 Coverdell Education Savings Accounts are _______ if funds are they are not distributed for approved educational expenses. Tax free Tax deferred Home

Taxes—300 A tax penalty of ___ is imposed if educational accounts are distributed for unapproved educational expenses. 0% 5% 10% 15% Home

Calculations—100 If a student incurs $3,260 in approved educational expenses, how much of an American Opportunity Tax Credit can be claimed? $785 $1,000 $2,315 $2,500 Home

Calculations—200 Suppose that tuition costs $7,500 a year today. How much will tuition cost in 10 years if it is increasing at a rate of 8%? About $10,000 About $12,000 About $14,000 About $16,000 Home

Calculations—300 Suppose that one anticipates needing $243,000 for college education in 14 years, how much must they save each month to reach that goal assuming they can earn 6% on their investments? About $750 About $1,000 About $1,250 About $1,500 Home

Financial Aid—100 A form used to determine a student’s eligibility for all types of financial aid, including grants, work study, and loans. EFC - Incorrect FAFSA ACG FSEOG Home

Financial Aid—100 A form used to determine a student’s eligibility for all types of financial aid, including grants, work study, and loans. EFC FAFSA – Correct! ACG FSEOG Home

Financial Aid—100 A form used to determine a student’s eligibility for all types of financial aid, including grants, work study, and loans. EFC FAFSA ACG - Incorrect FSEOG Home

Financial Aid—100 A form used to determine a student’s eligibility for all types of financial aid, including grants, work study, and loans. EFC FAFSA ACG FSEOG - Incorrect Home

Financial Aid—200 If a student had high financial need, which of the following aid types would like likely qualify for? Parent PLUS Loan - Incorrect Stafford Unsubsidized Loan Coverdell Grant Stafford Subsidized Loan Home

Financial Aid—200 If a student had high financial need, which of the following aid types would like likely qualify for? Parent PLUS Loan Stafford Unsubsidized Loan – Incorrect Coverdell Grant Stafford Subsidized Loan Home

Financial Aid—200 If a student had high financial need, which of the following aid types would like likely qualify for? Parent PLUS Loan Stafford Unsubsidized Loan Coverdell Grant – Incorrect Stafford Subsidized Loan Home

Financial Aid—200 If a student had high financial need, which of the following aid types would like likely qualify for? Parent PLUS Loan Stafford Unsubsidized Loan Coverdell Grant Stafford Subsidized Loan – Correct! Home

Financial Aid—300 Assume a graduate student was interested in obtaining additional aid for school, which would likely be the best option? Perkins Loan – Incorrect Stafford Subsidized Loan Graduate PLUS Loan Pell Grant Home

Financial Aid—300 Assume a graduate student was interested in obtaining additional aid for school, which would likely be the best option? Perkins Loan Stafford Subsidized Loan – Incorrect Graduate PLUS Loan Pell Grant Home

Financial Aid—300 Assume a graduate student was interested in obtaining additional aid for school, which would likely be the best option? Perkins Loan Stafford Subsidized Loan Graduate PLUS Loan – Correct! Pell Grant Home

Financial Aid—300 Assume a graduate student was interested in obtaining additional aid for school, which would likely be the best option? Perkins Loan Stafford Subsidized Loan Graduate PLUS Loan Pell Grant – Incorrect Home

College Savings Plans—100 Which of the following types of accounts allows tax free withdrawals of earnings if used for qualified k-12 expenses? Coverdell Savings Accounts – Correct! College Savings Plans (529 Savings Plans) Lifetime Learning Credit American Opportunity Credit Home

College Savings Plans—100 Which of the following types of accounts allows tax free withdrawals of earnings if used for qualified k-12 expenses? Coverdell Savings Accounts College Savings Plans (529 Savings Plans) - Incorrect Lifetime Learning Credit American Opportunity Credit Home

College Savings Plans—100 Which of the following types of accounts allows tax free withdrawals of earnings if used for qualified k-12 expenses? Coverdell Savings Accounts College Savings Plans (529 Savings Plans) Lifetime Learning Credit – Incorrect American Opportunity Credit Home

College Savings Plans—100 Which of the following types of accounts allows tax free withdrawals of earnings if used for qualified k-12 expenses? Coverdell Savings Accounts College Savings Plans (529 Savings Plans) Lifetime Learning Credit American Opportunity Credit – Incorrect Home

College Savings Plans—200 If a grandparent would like to start setting aside money for their grandchildren's unrestricted use in the future, which would be the best option? Coverdell Savings Accounts – Incorrect UGMA College Savings Plans (529 Savings Plans) Lifetime Learning Credit Home

College Savings Plans—200 If a grandparent would like to start setting aside money for their grandchildren's unrestricted use in the future, which would be the best option? Coverdell Savings Accounts UGMA – Correct! College Savings Plans (529 Savings Plans) Lifetime Learning Credit Home

College Savings Plans—200 If a grandparent would like to start setting aside money for their grandchildren's unrestricted use in the future, which would be the best option? Coverdell Savings Accounts UGMA College Savings Plans (529 Savings Plans) – Incorrect Lifetime Learning Credit Home

College Savings Plans—200 If a grandparent would like to start setting aside money for their grandchildren's unrestricted use in the future, which would be the best option? Coverdell Savings Accounts UGMA College Savings Plans (529 Savings Plans) Lifetime Learning Credit – Incorrect Home

College Savings Plans—300 Explain how prepaid tuition plans work and 1 disadvantage. Allow a parent to purchase college credits today and use those credits when the child attends college. Home

Taxes—100 The earnings on 529 college savings plans are _______ if funds are distributed for approved educational expenses. Tax free – Correct! Tax deferred Home

Taxes—100 The earnings on 529 college savings plans are _______ if funds are distributed for approved educational expenses. Tax free Tax deferred – Incorrect Home

Taxes—200 Coverdell Education Savings Accounts are _______ if funds are they are not distributed for approved educational expenses. Tax free – Incorrect Tax deferred Home

Taxes—200 Coverdell Education Savings Accounts are _______ if funds are they are not distributed for approved educational expenses. Tax free Tax deferred – Correct! Home

Taxes—300 A tax penalty of ___ is imposed if educational accounts are distributed for unapproved educational expenses. 0% - Incorrect 5% 10% 15% Home

Taxes—300 A tax penalty of ___ is imposed if educational accounts are distributed for unapproved educational expenses. 0% 5% - Incorrect 10% 15% Home

Taxes—300 A tax penalty of ___ is imposed if educational accounts are distributed for unapproved educational expenses. 0% 5% 10% - Correct! 15% Home

Taxes—300 A tax penalty of ___ is imposed if educational accounts are distributed for unapproved educational expenses. 0% 5% 10% 15% - Incorrect Home

Calculations—100 If a student incurs $3,260 in approved educational expenses, how much of an American Opportunity Tax Credit can be claimed? $785- Incorrect $1,000 $2,315 $2,500 Home

Calculations—100 If a student incurs $3,260 in approved educational expenses, how much of an American Opportunity Tax Credit can be claimed? $785 $1,000 - Incorrect $2,315 $2,500 Home

Calculations—100 If a student incurs $3,260 in approved educational expenses, how much of an American Opportunity Tax Credit can be claimed? $785 $1,000 $2,315 – Correct! $2,500 Home

Calculations—100 If a student incurs $3,260 in approved educational expenses, how much of an American Opportunity Tax Credit can be claimed? $785 $1,000 $2,315 $2,500 - Incorrect Home

Calculations—200 Suppose that tuition costs $7,500 a year today. How much will tuition cost in 10 years if it is increasing at a rate of 8%? About $10,000 - Incorrect About $12,000 About $14,000 About $16,000 Home

Calculations—200 Suppose that tuition costs $7,500 a year today. How much will tuition cost in 10 years if it is increasing at a rate of 8%? About $10,000 About $12,000 - Incorrect About $14,000 About $16,000 Home

Calculations—200 Suppose that tuition costs $7,500 a year today. How much will tuition cost in 10 years if it is increasing at a rate of 8%? About $10,000 About $12,000 About $14,000 - Incorrect About $16,000 Home

Calculations—200 Suppose that tuition costs $7,500 a year today. How much will tuition cost in 10 years if it is increasing at a rate of 8%? About $10,000 About $12,000 About $14,000 About $16,000 – Correct! Home

Calculations—300 Suppose that one anticipates needing $243,000 for college education in 14 years, how much must they save each month to reach that goal assuming they can earn 6% on their investments? About $750 - Incorrect About $1,000 About $1,250 About $1,500 Home

Calculations—300 Suppose that one anticipates needing $243,000 for college education in 14 years, how much must they save each month to reach that goal assuming they can earn 6% on their investments? About $750 About $1,000 – Correct! About $1,250 About $1,500 Home

Calculations—300 Suppose that one anticipates needing $243,000 for college education in 14 years, how much must they save each month to reach that goal assuming they can earn 6% on their investments? About $750 About $1,000 About $1,250 - Incorrect About $1,500 Home

Calculations—300 Suppose that one anticipates needing $243,000 for college education in 14 years, how much must they save each month to reach that goal assuming they can earn 6% on their investments? About $750 About $1,000 About $1,250 About $1,500 - Incorrect Home