ADAP Cost and Financial Aid 2 — Questions and Answers
Question 1: Which federal student aid program provides funds that do NOT need to be repaid?
- Federal Direct Subsidized Loan
- Federal Pell Grant (Correct answer)
- Federal Perkins Loan
- Federal Work-Study
Correct answer: Federal Pell Grant
The Federal Pell Grant is need-based grant money that does not require repayment.
Question 2: A student's Expected Family Contribution (EFC) is used to determine:
- Their credit score for private loans
- Eligibility for federal financial aid (Correct answer)
- The interest rate on subsidized loans
- How many credit hours they may enroll in
Correct answer: Eligibility for federal financial aid
The EFC (now called the Student Aid Index) helps determine a student's eligibility for need-based federal financial aid.
Question 3: What is the main difference between a subsidized and an unsubsidized federal student loan?
- Subsidized loans have higher borrowing limits
- The government pays interest on subsidized loans while the student is enrolled (Correct answer)
- Unsubsidized loans do not require repayment
- Subsidized loans are only available for graduate students
Correct answer: The government pays interest on subsidized loans while the student is enrolled
With subsidized loans, the federal government covers interest charges during enrollment and deferment periods.
Question 4: Which organization administers the federal student loan program in the United States?
- The Federal Reserve
- The U.S. Department of Education (Correct answer)
- The Social Security Administration
- The Small Business Administration
Correct answer: The U.S. Department of Education
The U.S. Department of Education oversees federal student aid programs, including grants and loans.
Question 5: An ADAP student receives a $3,000 scholarship and has $4,500 in program costs. What is their remaining balance after applying the scholarship?
- $1,000
- $1,500 (Correct answer)
- $3,000
- $7,500
Correct answer: $1,500
$4,500 minus $3,000 equals $1,500 remaining out-of-pocket balance.
Question 6: Which type of aid requires the student to work part-time, typically on campus, to earn funds?
- Institutional grant
- Federal Work-Study (Correct answer)
- Subsidized Direct Loan
- State scholarship
Correct answer: Federal Work-Study
Federal Work-Study provides part-time employment opportunities to help students earn money for educational expenses.
Question 7: What happens to a student's financial aid if they withdraw from a dental assisting program before completing 60% of the term?
- Aid is automatically increased for the next term
- A portion of federal aid may be returned under the Return of Title IV calculation (Correct answer)
- All aid converts to a grant
- Nothing changes; aid is fully disbursed
Correct answer: A portion of federal aid may be returned under the Return of Title IV calculation
Federal regulations require that unearned Title IV funds be returned to the government when a student withdraws early in the term.
ADAP Cost and Financial Aid 2
Which federal student aid program provides funds that do NOT need to be repaid?