CEP Financial Aid and Scholarships 2

Question 1

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

Accepted Answer

Pell Grant

Answer

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

Question 2

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

Accepted Answer

It collects more detailed financial information for institutional aid decisions

Answer

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.

Question 3

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

Accepted Answer

Small business assets for businesses with fewer than 100 employees

Answer

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

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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.

(CEP) Certified Educational Planner Practice Test

(CEP) Certified Educational Planner Practice Test

CEP Financial Aid and Scholarships 2