Practice Test Geeks(CEP) Certified Educational Planner Practice Test
← All CEP Flashcard Decks

Financial Aid and Scholarships Flashcards

7 cards from real CEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Aid and Scholarships flashcards as text

  1. A student's EFC on the FAFSA is $0. Which federal grant provides the maximum award to this student?

    Answer: Pell Grant

    The Pell Grant is the primary federal need-based grant, and an EFC of $0 qualifies a student for the maximum Pell award.

  2. What is the primary purpose of the CSS Profile compared to the FAFSA?

    Answer: It collects more detailed financial information for institutional aid decisions

    The CSS Profile gathers more comprehensive financial data—including home equity and non-custodial parent information—to help colleges determine their own institutional aid awards.

  3. Under the simplified needs test on the FAFSA, which asset is excluded from the calculation?

    Answer: Small business assets for businesses with fewer than 100 employees

    Small businesses with fewer than 100 full-time employees are excluded from FAFSA asset reporting under the simplified needs test.

  4. A parent owns a rental property worth $200,000. How does FAFSA treat this asset?

    Answer: It is assessed at up to 5.64% as a parent asset

    Investment real estate (excluding the primary home) is reported as a parent asset and assessed at no more than 5.64% in the federal aid formula.

  5. What does 'verification' mean in the federal financial aid process?

    Answer: The Department of Education or school checks FAFSA data accuracy against supporting documents

    Verification is the process by which a college reviews and confirms the accuracy of FAFSA information using documents such as tax transcripts and W-2s.

  6. Which of the following best describes a 'merit-based' scholarship?

    Answer: Aid awarded based on academic, athletic, or other non-need criteria

    Merit-based scholarships are awarded for achievements such as GPA, test scores, athletic talent, or leadership, independent of financial need.

  7. A college's financial aid award letter shows $15,000 in 'grants,' $3,500 in 'subsidized loans,' and $2,000 in 'work-study.' What is the student's true gift aid total?

    Answer: $15,000

    Gift aid includes only grants and scholarships; loans must be repaid and work-study requires employment, so only the $15,000 in grants is free money.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. aicep.org — Fees, retake fee, test dates, score validity, test delivery, exam format, passing score, retake policy, time limit · verified Oct 2026