ADAP Cost and Financial Aid 3 — Questions and Answers
Question 1: Which of the following costs is typically considered an indirect cost of attending a dental assisting program?
- Tuition
- Lab fees
- Transportation and personal expenses (Correct answer)
- Required textbooks
Correct answer: Transportation and personal expenses
Indirect costs such as transportation, housing, and personal expenses are not billed by the school but are included in the Cost of Attendance estimate.
Question 2: A student who maintains a satisfactory academic progress (SAP) standard is required to:
- Earn at least a 4.0 GPA
- Meet minimum GPA and completion rate thresholds set by the school (Correct answer)
- Complete 100% of attempted credits each term
- Enroll full-time every semester
Correct answer: Meet minimum GPA and completion rate thresholds set by the school
SAP policies require students to maintain a minimum GPA and complete a required percentage of attempted credits to retain financial aid eligibility.
Question 3: What is the purpose of an award letter from a dental assisting school?
- To confirm a student's acceptance into the program
- To detail the types and amounts of financial aid offered to a student (Correct answer)
- To notify a student of their final exam schedule
- To summarize a student's clinical competency results
Correct answer: To detail the types and amounts of financial aid offered to a student
The award letter (or financial aid offer) outlines scholarships, grants, loans, and work-study funds offered to the student for the academic year.
Question 4: Which of the following is a characteristic of a private student loan compared to a federal student loan?
- Private loans offer income-driven repayment plans by default
- Private loans typically have higher interest rates and fewer borrower protections (Correct answer)
- Private loans are funded by the federal government
- Private loans never require a credit check
Correct answer: Private loans typically have higher interest rates and fewer borrower protections
Private student loans are issued by banks or credit unions and generally carry higher interest rates and fewer consumer protections than federal loans.
Question 5: What is loan capitalization in the context of student loans?
- Converting a loan to a grant after graduation
- Adding unpaid interest to the principal loan balance (Correct answer)
- Reducing the interest rate after on-time payments
- Setting a fixed monthly payment amount
Correct answer: Adding unpaid interest to the principal loan balance
Capitalization occurs when accumulated unpaid interest is added to the principal, increasing the total amount owed.
Question 6: Which repayment plan ties monthly federal loan payments to a borrower's income and family size?
- Standard Repayment Plan
- Graduated Repayment Plan
- Income-Driven Repayment Plan (Correct answer)
- Extended Repayment Plan
Correct answer: Income-Driven Repayment Plan
Income-Driven Repayment plans cap monthly payments at a percentage of the borrower's discretionary income.
Question 7: A dental assisting student is offered a $2,000 subsidized loan and a $1,500 unsubsidized loan. What is the total loan amount offered?
- $1,500
- $2,000
- $3,500 (Correct answer)
- $4,500
Correct answer: $3,500
$2,000 plus $1,500 equals a total of $3,500 in federal loan funds offered.
ADAP Cost and Financial Aid 3
Which of the following costs is typically considered an indirect cost of attending a dental assisting program?